Energy in Iceland

[4] Only two islands, Grímsey and Flatey, are not connected to the national grid and so rely primarily on diesel generators for electricity.

[4] Most of the hydropower plants are owned by Landsvirkjun (the National Power Company) which is the main supplier of electricity in Iceland.

[6] The remaining homes that are not located in areas with geothermal resources are heated by renewable electricity instead.

Iceland's unique geology allows it to produce renewable energy relatively cheaply, from a variety of sources.

Iceland is located on the Mid-Atlantic Ridge, which makes it one of the most tectonically active places in the world.

[8] This is what allows Iceland to harness geothermal energy, and these steam fields are used for heating everything from houses to swimming pools.

Iceland is also starting to use "cold" areas away from the steam fields to produce warm water for space heating.

Reykjavík wanted to copy their success, so they appointed Thor Jenssen to run and build a gas station, Gasstöð Reykjavíkur.

Jenssen could not get a loan to finance the project, so a deal was made with Carl Francke to build and run the station, with options for the city to buy him out.

[11] This trend continued and increases in the production of hydroelectric power are directly related to industrial development.

Iceland's government believes another 30 TWh of hydropower could be produced each year, while taking into account the sources that must remain untapped for environmental reasons.

The first use of geothermal energy for heating did not come until 1907 when a farmer ran a concrete pipe from a hot spring to lead steam into his house.

57.4% of the energy is used for space heat, 25% is used for electricity, and the remaining amount is used in many miscellaneous areas such as swimming pools, fish farms, and greenhouses.

This agency has been very successful and has made it economically viable to use geothermal energy as a source for heating in many different areas throughout the country.

[13] Iceland's abundant geothermal energy has also enabled renewable energy initiatives, such as Carbon Recycling International's carbon dioxide to methanol fuel process, which could help reduce Iceland's dependence on fossil fuels.

[15] Source: NREL[16] Iceland has relatively low insolation, due to the high latitude, thus limited solar power potential.

In February 2008, Costa Rica, Iceland, New Zealand and Norway were the first four countries to join the Climate Neutral Network, an initiative led by the United Nations Environment Programme (UNEP) to catalyse global action towards low carbon economies and societies.

[22][23] In 2023 a plant using Carbfix technology, an Icelandic invention, will store up to 3 million tonnes of carbon dioxide in rock, with most of it being imported.

Professor Bragi Árnason first proposed the idea of using hydrogen as a fuel source in Iceland during the 1970s when the oil crisis occurred.

The ECTOS (Ecological City Transport System) demonstration project ran from 2001 to August 2005.

[30] The project studied the long-term effects and most-efficient ways of using hydrogen powered buses.