How Is Iceland Affected By Geothermal Energy?

Iceland has a long history of using its abundant geothermal resources for energy production. Geothermal energy use in Iceland dates back to the early 20th century when hot springs were first harnessed for heating homes and greenhouses (Geothermal power in Iceland). The country’s volcanic geology provides excellent conditions for geothermal activity, with over 200 volcanoes located across the island.

Today, geothermal power provides over a quarter of Iceland’s primary energy supply. As of 2020, 70.38% of Iceland’s total energy consumption comes from renewable geothermal sources (Geothermal power in Iceland). The Icelandic government has set ambitious goals to source all of the country’s energy from renewable sources by 2050.

Abundant Geothermal Resources

Iceland has abundant geothermal resources due to its location on the Mid-Atlantic Ridge. The country has high temperature geothermal fields and hydrothermal systems all over the island. Some major geothermal areas in Iceland include Reykjanes, Hengill, Krafla, and Nesjavellir. These areas have surface manifestations like hot springs, fumaroles, mud pools, and geysers.

It’s estimated that Iceland has at least 20 high-temperature geothermal systems with temperatures exceeding 150°C. In total, hydrothermal systems in Iceland cover about 25% of the country’s land area. This gives the country access to an estimated 50,000 km3 of geothermal fluids at 150°C or higher.

Compared to other countries, Iceland has the largest share of geothermal resources per capita in the world. The availability and abundance of geothermal areas allows Iceland to utilize this renewable energy source extensively.

Electricity Generation

Geothermal power provides the vast majority of electricity generation in Iceland. As of 2020, geothermal sources accounted for 70.38% of Iceland’s total electricity production. The country has a total installed geothermal electricity generation capacity of 755 MW as of 2023, making Iceland a top 10 geothermal power generating country globally.

Most of Iceland’s geothermal power plants are located in the southwest part of the country, where some of the most productive reservoirs are concentrated. Major geothermal power plants include the Svartsengi plant (75 MW), Nesjavellir (120 MW), and Hellisheiði (303 MW). There are also a number of smaller plants spread around the country.

Iceland has set ambitious goals to expand its geothermal capacity even further. The country aims to produce 100% of its electricity from renewable sources by 2040. Geothermal is expected to play a major role in achieving this target, with plans to boost geothermal generation capacity to 1,100 MW over the next two decades.

Heating and Cooling

Iceland meets nearly all of its heating and hot water needs using geothermal energy. The country has an extensive district heating system that pipes hot water from geothermal sources under the ground directly to buildings for heating. According to Geothermal District Heating in Iceland, around 90% of Iceland’s buildings are heated using geothermal district heating systems. The remaining buildings rely on electricity for heating, which is also primarily sourced from renewable hydroelectric and geothermal power in Iceland.

The district heating system provides heat and hot water to homes, businesses, industries, and public buildings like schools and hospitals across Iceland. Pipes carry hot water under the streets and sidewalks, keeping them free of ice and snow in the winter. Iceland’s capital Reykjavik and many other towns have access to geothermal heating. The abundant geothermal resources allow Iceland to heat its buildings affordably and sustainably without needing to import fossil fuels.

Economic Impact

The geothermal industry in Iceland has had a major economic impact. Approximately 26% of Iceland’s total exports and 5% of GDP is attributed to geothermal energy. The geothermal industry accounted for over $2 billion in revenue in 2019 and employed over 5,000 people directly. Geothermal energy allows Iceland to be energy independent and not have to rely on imported fossil fuels. The low-cost and abundant electricity from geothermal powers homes and businesses. It also enables emerging industries like data centers and cryptocurrency mining. Side businesses utilizing geothermal byproducts like minerals, algae, and vegetables grown in greenhouses provide additional economic opportunities. Overall, Iceland’s strategic use of its geothermal resources has been a major driver for its economy and job creation.

Environmental Benefits

One of the greatest benefits of geothermal energy in Iceland is its ability to provide clean, renewable power with far fewer greenhouse gas emissions compared to fossil fuels. According to Iceland Using Geothermal to Remove CO2, geothermal energy produces about 99% fewer carbon emissions than traditional fossil fuels. While geothermal energy does emit some CO2, Iceland is taking steps to reduce those emissions even further. For example, the Hellisheiði geothermal power plant captures and reinjects 50% of its CO2 emissions back into the geothermal reservoir, according to Additional geothermal plant in Iceland to capture and reinject CO2. The Icelandic government has set a goal to reduce emissions from geothermal plants by 47% by 2030. By tapping into Iceland’s abundant geothermal resources, the country has been able to provide the majority of its electricity and heating from local, renewable sources while greatly reducing greenhouse gas emissions and air pollution.

Agricultural Uses

Iceland has abundant geothermal energy resources which allows them to heat greenhouses for year-round agricultural production. One major use is for greenhouse farming and horticulture. Iceland has developed a large greenhouse industry for growing tomatoes, cucumbers, peppers, and other crops. The greenhouses use geothermal heating to maintain warm temperatures year-round for crop production (The greenhouse revolution in Iceland). This allows Iceland to produce fresh vegetables and fruits despite the cold climate.

There are extensive geothermally heated greenhouses near Reykjavik as well as in other parts of Iceland. It is estimated that over 50 hectares of greenhouses in Iceland are heated using geothermal energy (Iceland’s Greenhouses: Creating a Sustainable Agricultural Industry). The low-cost heating allows for affordable local food production. Geothermal heating is also used for fish farming, allowing Iceland to farm fish such as tilapia.

Tourism

Iceland’s geothermal resources have fueled a booming tourism industry centered around hot spring bathing and swimming. The country has become known for its abundance of geothermal spas and pools, which attract visitors from around the world.

The Blue Lagoon is Iceland’s most famous geothermal spa, located near the capital city of Reykjavik. Its bright blue waters come from the nearby Svartsengi geothermal power plant. The warm mineral-rich waters are reputed to have healing properties for skin conditions. The spa has become a top tourist destination, receiving over 1 million visitors per year.

Beyond the Blue Lagoon, visitors can find hot springs and geothermal pools all around Iceland. The Myvatn Nature Baths in north Iceland offer stunning views of volcanic landscape. The Landmannalaugar area in the Icelandic highlands features natural hot springs perfect for bathing after a day of hiking. Small towns like Hveragerði and Flúðir have local geothermal swimming pools heated using power from nearby hot springs.

Geothermal spas and hot springs have become iconic attractions that draw tourists from all over the world. They showcase Iceland’s renewable geothermal resources while providing the opportunity to relax in naturally heated therapeutic waters.

Challenges

While geothermal energy provides abundant renewable energy for Iceland, there are some sustainability challenges that must be addressed. One major concern is the potential for overexploitation of geothermal resources. Extensive drilling and fluid extraction can lead to subsidence, or lowering of the land surface, as well as depletion of reservoirs over time (Ingimarsson, 2012). Careful monitoring and management of extraction rates is critical to prevent long-term resource decline.

There are also potential environmental impacts that must be mitigated. Geothermal development can release gases like hydrogen sulfide, carbon dioxide, and ammonia. Proper containment infrastructure is needed to capture these emissions. The fluids extracted typically contain heavy metals that can pollute water if not properly disposed of. And the surface disturbances from drilling well pads and pipelines can disrupt habitats and ecosystem connectivity if not designed sensitively (Flovenz, 2019).

Going forward, a balanced approach is needed between developing Iceland’s abundant geothermal resources and conserving sensitive natural areas. With careful siting, emissions controls, and sustainable extraction rates, Iceland can continue benefiting from this renewable resource while protecting the environment (Energy Transition, 2023).

Ingimarsson, J. (2012). Challenges for geothermal energy – experience from Iceland. Retrieved from https://conferences.iaia.org/2012/pdf/presentations/558_Ingimarsson_Challenges%20for%20geothermal%20energy%20June%202012.pdf

Flovenz, Ó. (2019). Geothermal exploitation in Iceland – Success and challenges. Retrieved from https://www.ecsmge-2019.com/uploads/2/1/7/9/21790806/k5-1119-ecsmge-2019_flovenz.pdf

Energy Transition. (2023). Geothermal Iceland: This land of fire and ice is pushing the limits of its natural energy. Retrieved from https://energytransition.org/2023/03/geothermal-iceland-this-land-of-fire-and-ice-is-pushing-the-limits-of-its-natural-energy/

Conclusion

Iceland’s unique geology gives it access to abundant geothermal resources, which have become an integral part of the country’s infrastructure and economy. The country generates 100% of its electricity from renewable sources, with 73% coming from geothermal. This cheap, reliable energy powers homes, businesses, industries, and more. Geothermal heating meets the heating and hot water needs for 90% of Iceland’s buildings. The country’s expertise in geothermal technology has led to expertise in district heating systems, greenhouses, fish farming, and more novel applications.

Geothermal power generation and direct use provides substantial economic benefits for Iceland. The country estimates it saves over $100 million per year in imported coal and oil by using geothermal energy. Geothermal industries employ thousands of Icelanders and contribute significantly to GDP. Geothermal energy also enables sustainable tourism opportunities like the famous Blue Lagoon spa.

Using clean geothermal energy helps Iceland avoid over 2 million tons of CO2 emissions per year compared to fossil fuels. This supports Iceland’s efforts towards sustainability and reducing its carbon footprint. While there are some environmental concerns related to geothermal, like hydrogen sulfide emissions, Iceland has implemented procedures to closely monitor and mitigate these effects.

Going forward, Iceland will continue exploring ways to optimize its geothermal resources. The country is looking to expand district heating systems to serve even more communities. Iceland is also conducting research into using geothermal energy for mineral extraction, agriculture, and other novel applications. The country’s expertise in geothermal technology has turned this natural resource into the foundation for a thriving renewable energy economy.