Geothermal energy is heat that is generated from the earth. Geothermal power generates 25% of Iceland’s total electricity production. Geothermal energy has been used for thousands of years for cooking and heating. To produce geothermal- generated electricity, wells, sometimes a mile deep, are drilled into the ground to tap steam and very hot water that drive turbines linked to electricity generators. There are three types of geothermal power plants: dry steam, flash, and binary. 87% of Iceland’s heat and water needs are met with geothermal energy. Iceland itself is 100% powered by renewable energy because the 75% of the electricity that is not provided by geothermal energy, is provided by hydropower. Due to the high availability of geothermal and hydro energy, energy costs for the average person in Iceland are extremely low. The people of Iceland are debating whether or not they should begin exporting their resources to other countries, but many are worried that it will lead to increased pricing for the people of Iceland. That being said, geothermal energy has proven to be an extremely efficient and cost-effective type of energy.
Sources:
http://environment.nationalgeographic.com/environment/global-warming/geothermal-profile/
http://www.renewableenergyworld.com/rea/blog/post/2013/03/geothermal-energy-in-iceland-too-much-of-a-good-thing