Future Perfect

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nergy

access

efficiency

and

sustainability

Geothermal direct use

Early in the twentieth century attempts were made to

heat Icelandic houses by piping water in from natural

hot springs and later, from shallow boreholes. The first

district heating system in Iceland came into use in 1928.

A kilometres-long pipeline extended from hot springs

in Reykjavik to a swimming hall and nearby houses.

The largest increase in the use of geothermal heat took

place as a result of large investments in exploration

and district heating developments, a result of the rising

price of oil and the energy crisis of the 1970s.

District heating has been extended to cover 90

per cent of all house heating in Iceland, a country of

103,000 km

with 333,000 inhabitants. The longest

distance between source and customer is 63 km.

Environmental gain through building up infrastructure

for district-wide heating and cooling can be as great as

70 per cent due to the flexibility associated with using

various sources for heating, such as that from industrial

processes waste, low-grade fuels such as garbage and

waste from forestry and heat pumps. Geothermal heat

accounts for the remaining 30 per cent. In many coun-

tries the general attitude is that introduction of such

an infrastructure is beyond reason in established, well-

populated areas. However, examples from Iceland and

Scandinavia may prove the opposite.

– paralleled the economic growth of the country. Although growth

in energy used from fossil fuels has developed more slowly, the

increase in consumption coincides with improved living stand-

ards, higher mobility and a bigger fishing fleet, which has more

than compensated for the reduction in fossil fuel-based heating.

Relatively big steps in electricity generation during 1970, 2000 and

2007 were due to major industrial investments, mostly in smelters.

Today the nation’s electricity production is almost entirely

from renewable sources – 74 per cent from hydropower and 26

per cent from geothermal power – with less than 20 per cent

of total electricity production being sold to small and medium-

sized customers. As 90 per cent of space heating is sourced from

geothermal origins and 10 per cent mostly electricity from renew-

able sources, the positive effect on the country’s economy and

trading balance is extremely significant, irrespective of any envi-

ronmental benefits. With increasing oil prices it is becoming very

clear that living standards are affected.

But there are many challenges to be overcome. Some are common

to many projects where renewable and sustainable energy is being

implemented, including Government strategies for basic research

and development, a strong and sustainable base for building up

knowledge and skill, the need for long-term capital and economic

risk mitigation, legal and regulatory framework and market issues.

Others are more specific, such as the long-term management and

ownership of geothermal resources, and concessions and special

environmental concerns in barren volcanic landscapes.

Geothermal wells piping in hot water to reservoir tanks above Reykjavik

Image: Oddur Sigurdsson