Iceland is located in the Mid-Atlantic Ridge, which makes it in one of the most tectonically active places in the world, with great potential to produce renewable energy. It has more than 200 volcanoes and 600 hot springs (high temperature fields reach up to 250º).
The uses of steam fields are really varied, offering everything from pools to heat homes. Initially, and focusing on geothermal energy, its inhabitants used the hot springs for bathing and washing clothes.
In 1907 they realized that they could give other uses as heating system. Since that moment, and throughout the years, pipes and pipelines were constructed. Through these tubes, hot water got houses, schools and hospitals nearby.
It is noteworthy that the government has also played an important role at this development as it has economically driven research of this phenomenon in order to take advantage.
Currently this geothermal energy heats more than 60% of households also can generate electricity, space heating, pools, greenhouses …
I should also say that, besides geothermal energy, the region is fed on a larger scale with hydropower, able to supply a large part of the inhabitants of electricity.
Iceland is the first country in the world that has a primarily fueled by renewable energy economy.
With the next video you could perfectly understand how geothermal energy works in Iceland.
Sources:
http://www.europarl.europa.eu/news/es/news-room/content/20120203STO37172/html/Islandia-experta-en-energ%C3%ADas-renovables-y-en-el-%C3%81rtico
http://www.claneco.com/cl/energia-geotermica-en-islandia/
http://grupo02termo.wordpress.com/