geothermal development and research in iceland - Orkustofnun
geothermal development and research in iceland - Orkustofnun
geothermal development and research in iceland - Orkustofnun
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
obta<strong>in</strong>ed through an <strong>in</strong>creased generation of electricity through hydropower, as is<br />
done <strong>in</strong> Norway. Nevertheless, the economic sav<strong>in</strong>gs garnished by us<strong>in</strong>g <strong>geothermal</strong><br />
energy is substantial, <strong>and</strong> has contributed significantly to Icel<strong>and</strong>’s prosperity.<br />
Us<strong>in</strong>g <strong>geothermal</strong> energy for space heat<strong>in</strong>g has also benefited the environment. Both<br />
<strong>geothermal</strong> energy <strong>and</strong> hydropower have been classified as renewable energy resources,<br />
contrary to carbon fuels such as coal, oil <strong>and</strong> gas. Geothermal heat is also less<br />
damag<strong>in</strong>g to the environment than carbon fuels <strong>in</strong> that it does not emit CO 2<br />
<strong>in</strong>to the<br />
atmosphere. Assum<strong>in</strong>g that <strong>geothermal</strong> energy used for heat<strong>in</strong>g homes <strong>in</strong> 2003 was<br />
equivalent to the heat obta<strong>in</strong>ed from the burn<strong>in</strong>g of 646,000 tones of oil, the use of<br />
<strong>geothermal</strong> energy reduced the total release of CO 2<br />
<strong>in</strong> the country by roughly 37%.<br />
Besides the economic <strong>and</strong> environmental benefits, the <strong>development</strong> of <strong>geothermal</strong><br />
resources has had a desirable impact on social life <strong>in</strong> Icel<strong>and</strong>. People have preferred<br />
to live <strong>in</strong> areas where <strong>geothermal</strong> heat was available, <strong>in</strong> the capital area <strong>and</strong> <strong>in</strong> rural<br />
villages where thermal spr<strong>in</strong>gs can be exploited for heat<strong>in</strong>g dwell<strong>in</strong>gs <strong>and</strong> greenhouses,<br />
schools, swimm<strong>in</strong>g pools <strong>and</strong> other sport facilities, tourism <strong>and</strong> smaller <strong>in</strong>dustry.<br />
Statistics show improved health of the <strong>in</strong>habitants of these regions.<br />
4.1.7 Equalization of energy prices<br />
Equalization of energy prices is a decades old Icel<strong>and</strong>ic policy. This policy has been<br />
carried out <strong>in</strong> various ways, such as pay<strong>in</strong>g subsidies to those who heat their homes<br />
with oil. Families us<strong>in</strong>g electricity to heat their homes have also received government<br />
subsidies, s<strong>in</strong>ce 1982 (Fig. 6). In 2002, a new Act on Subsidies was approved. These<br />
subsidies now amount to about $15 million per year, <strong>and</strong> a small part of that goes to<br />
lower<strong>in</strong>g the cost of oil where no other means of heat<strong>in</strong>g homes are available. The<br />
cost of heat<strong>in</strong>g is not solely determ<strong>in</strong>ed<br />
by energy prices. Houses<br />
differ <strong>in</strong> their condition, especially<br />
older houses, with regards<br />
to th<strong>in</strong>gs like <strong>in</strong>sulation <strong>and</strong> the<br />
control of heat<strong>in</strong>g systems. The<br />
needs <strong>and</strong> habits of the <strong>in</strong>habitants<br />
differ. Therefore the cost<br />
of heat<strong>in</strong>g two homes of equal<br />
size <strong>in</strong> the same district might<br />
vary considerably. The solution<br />
for high heat<strong>in</strong>g bills might very<br />
well be home improvements,<br />
or implement<strong>in</strong>g energy sav<strong>in</strong>g<br />
strategies. The government encourages<br />
such improvements to<br />
reduce subsidies.<br />
Fig. 6. Comparison of energy<br />
prices for residential<br />
heat<strong>in</strong>g September 2005<br />
17