geothermal development and research in iceland - Orkustofnun

1. Introduction
Iceland is a country of 300,000 people, located on the mid-Atlantic ridge. It is mountainous
and volcanic with much precipitation. The country’s geographical peculiarities
have endowed Iceland with an abundant supply of geothermal resources and
hydropower. During the course of the 20th century, Iceland went from what was one
of Europe’s poorest countries, dependent upon heat and imported coal for its energy,
to a country with a high standard of living where practically all stationary energy, and
roughly 72% of primary energy, is derived from indigenous renewable sources (54%
geothermal, 18% hydropower). The rest of Iceland’s energy sources come from imported
fossil fuel used for fishing and transportation. Iceland’s energy use per capita
is among the highest in the world, and the proportion of this provided by renewable
energy sources exceeds most other countries. Nowhere else does geothermal energy
play a greater role in proving a nation’s energy supply. Almost three-quarters of the
population live in the southwestern part of the country, where geothermal resources
are abundant.
Fig. 1. Electricity
consumption 2004
The current utilization of geothermal energy
for heating and other direct uses is considered
to be only a small fraction of what
this resource can provide. The potential
to generate electricity is more uncertain.
Hydropower has been the main source of
electricity, but in recent decades geothermal
power plants have also won their share
of the production. The increased demand
for electric energy comes mainly from the
energy intensive industry (fig. 1). In 2004,
geothermal plants generated 17% of the total
8,618 GWh produced. In 2009, the total
production is forecast to be about 15,000
GWh, 20% generated in geothermal plants.
At the same time, 80% of the electricity will