Iceland and renewable energy

Summary: Iceland already obtains all of its electricity from renewable resources and is now attempting to make itself a carbon-free nation by 2050.

Iceland was part of the Danish Kingdom into the 20th century. Because of its isolation from Europe, Iceland did not experience the Industrial Revolution and remained an agricultural country until the early 20th century. Most families lived in fishing villages or raised animals on farms, which limited the energy needs of the country.

The first effects of the Industrial Revolution were felt in the fishing industry. Trawlers and other advancements were introduced, and the manufacturing and exportation of marine products expanded greatly. Consequently, Iceland began developing into a modern industrial state, and the energy demands of the population and industry began to rise.

In 1904, the first hydroelectric power plant, producing 9 kilowatts of energy, was built near Reykjavik. The first municipal power plant, which produced 1 megawatt of electricity, was built in 1921 and quadrupled the electric potential of the country. With increased energy demand, more hydroelectric plants were built. Currently, there are fifteen hydroelectric plants in Iceland, which supply the majority of the country’s electrical needs.

Geothermal power was developed simultaneously. Iceland sits on one of the most geologically active parts of the world, with large numbers of volcanoes, hot springs, and high-temperature steam fields. It is this geologic activity that forms the backbone of Iceland’s geothermal potential.

Geothermal energy has been in use in Iceland for generations. For decades, families would capture the geothermal energy to wash and bathe. In 1930, the first municipal geothermal power plant was opened, which heated sixty homes, two schools, and a hospital. In late 1943, the first large-scale heating networks were developed using pipes provided by the World War II American Lend-Lease Act. This network has grown so much that more than 95 percent of all houses in Iceland are now connected to a district heating network, which is the largest in the world. The fifteen geothermal plants are increasingly used to produce energy but are still primarily used to heat water.

Iceland is unique because of its isolation from other European energy networks and because its location contains large amounts of renewable energy sources. It is for this reason that Iceland is able to fill 87 percent of its energy needs from renewable resources, including 100 percent of its electricity. Hydroelectric sources account for 20 percent of Iceland’s electric supply, with the remaining 67 percent coming from wind, solar, geothermal, and other sources (2022). In addition, more than 10 percent of Iceland’s energy needs are fulfilled by using oil and/or coal.

Although Iceland already fills its demand for electricity with renewable resources, there are further opportunities for growth. It is estimated that Iceland has hydroelectric potential for 25–30 terawatt hours (TWh) per year. In 2022, Iceland generated a total of 20.12 TWh and used a total of about 19.6 TWh per year. Geothermal also offers great potential, although it is estimated that this resource is not renewable in the same sense as hydropower.

Movement to Carbon-Free

Iceland pledged to be a carbon-free society by 2050. Despite the long time line, the country is already working toward that goal. With electricity already produced by carbon-free sources, the focus is on the transportation sector, primarily cars and ships. The government is moving forward on initiatives that offer economic incentives while reducing the carbon footprint of both sectors. Electric cars and hydrogen fuel cell automobiles are seen as the future for Iceland’s transportation needs. Reykjavik Energy offers free electricity at charging stations in the city, and the city is looking to replace large parts of its car fleet with electric cars. In addition, hydrogen fuel cell initiatives are being explored. Rental car agencies are already using hydrogen fuel cell cars, and refueling stations can be found within the main cities. In December 2009, Ford sent hydrogen cars to test their ability to operate in Arctic climates. The Icelandic government estimates that it could save 12 billion Icelandic kronas ($104 million) by eliminating the need for imported fuel for the Icelandic car fleet. Hydrogen power is also seen as a possible way to move Iceland’s fishing fleet away from fossil fuels. Some vessels are outfitted with an auxiliary engine powered by hydrogen fuel cells, which gives researchers a window into how this technology works in the field.

Bibliography

“Energy.” Government of Iceland, 2024, www.government.is/topics/business-and-industry/energy. Accessed 5 Aug. 2024.

“Energy Data.” ASKJA Energy, ASKJA Energy Partners, askjaenergy.com/iceland-introduction/energy-data. Accessed 5 Aug. 2024.

“Iceland.” International Energy Agency, 2024, www.iea.org/countries/iceland. Accessed 5 Aug. 2024.