Future Perfect

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Renewable energy as a driver for economic and

sustainable growth – the Icelandic perspective

Gudni A. Jóhannesson, Director General at Orkustofnun, the National Energy Authority of Iceland

celand is a country with its most northerly parts touching

the Arctic Circle, but although it is surrounded by the Gulf

Stream, temperatures are moderate. Winter averages about

0°C, while in summer the highest monthly average is about

14°C. However, these temperatures, together with the fact that

the number of daylight hours in the capital Reykjavik during

the winter solstice is less than seven hours, mean that heating

is required all year round. About 70 per cent of the population

lives in the area south-west of Reykjavík, with the remainder

mostly distributed along the 1,400 km Road 1, which follows

the coastline around the island. Icelandic geology is distinctive,

possessing volcanoes, high inland glaciers and abundant water

resources both above and below the ground. Energy consists

mainly of hydropower and geothermal sources at various

temperature levels up to 350°C and beyond. Wind, sun, waves

and tides are potential sources of energy, but the high cost of

accessing these means they are unable to compete with hydro-

power and geothermal energy as a renewable resource.

Renewable energy driving economic growth

Economic growth and development of the nation into

a modern community with a relatively high stand-

ard of living goes hand in hand with its exploitation

of sustainable natural energy resources. The develop-

ment of small-scale hydropower, along with local use

of geothermal resources, began in the early twentieth

century. During the 1960s, major development of

hydropower projects for larger energy-intensive indus-

tries began and during the 1970s – in the wake of the

energy crisis – considerable national effort was initi-

ated to identify geothermal sources and distribute their

energy to more remote communities. In the late 1980s

extensive development of geothermal power from high

temperature sources became a competitive alternative

to large-scale hydropower.

Growth in the use of electricity from hydropower –

and both electricity and heat from geothermal sources

nergy

access

efficiency

and

sustainability

Placing power plants sensitively is difficult in barren landscapes

Image: Gudni A. Jóhannesson