Iceland
Iceland is a world leader in the use of geothermal energy source for both domes- tic and industrial purposes. Iceland today generates 100 % of its electricity with renewables: 75 % of that from large hydropower plants, and 25 % from geother- mal power plants. Equally significant, Iceland provides 87 % of its demand for hot water and heat with geothermal energy, primarily through an extensive district- heating system. Icelandic homes enjoy heating by geothermal energy at a price usually less than half of the comparable cost of oil or electric heating. This is one of the contributing factors that make Iceland one of the greenest environments in Europe.
Geothermal energy has also been used for the production of electricity in Iceland. The first geothermal power plant was built in 1969 in Bjarnarflag (North Iceland) and is still operating. Today, there are seven of them.
As a result of the large expansion within the Iceland’s energy-intensive industry, the demand for electricity generated by geothermal energy has increased sig- nificantly (Kranz 2007). The total installed capacity in 2011 was 665 MWe; in that year, 40 % of geothermal utilization in Iceland was for electricity production. Geothermal electricity production in the country has increased significantly since 1999, with the installation of new plants in Svartsengi, Krafla, and Nesjavellir (Fig. 6.5).
Finally, it is important to highlight the following: Iceland is a leader in geothermal development and exports its technical expertise worldwide. The country, along with the Philippines and El Salvador, is among countries with the highest penetration of geothermal energy in electricity generation worldwide. On a per capita basis, Iceland is an order of magnitude ahead of any other nation in installed geo- thermal generating capacity.
Generation of Electricity Using Geothermal Energy
The evolution of the generation of electricity using geothermal energy in Iceland during the period 2008–2012 is shown in Fig. 6.6.
According to Fig. 6.6, the generation of electricity in Iceland using geothermal energy during the period 2008–2012 increased 23.2 %. It is expected that the use of this type of energy source will continue to be an important component of the energy mix of the country during the coming years.
