Iceland is well known to be a world leader in the use of geothermal district heating. After the second World War, Orkustofnun carried out research and development, which has led to the use of geothermal resources for heating of households. Today, about 9/10 households are heated with geothermal energy. Space heating is the largest component in the direct use of geothermal energy in Iceland. The figure here on the right gives a breakdown of the utilization of geothermal energy for 2011. In the year 2011, the total use of geothermal energy was 42,2 PJ, with space heating accounting for 45%.

Generating electricity with geothermal energy has increased significantly in recent years. As a result of a rapid expansion in Iceland’s energy intensive industry, the demand for electricity has increased considerably. Iceland is a pioneer in the use of geothermal energy for space heating. Generating electricity with geothermal energy has increased significantly in recent years. Geothermal power facilities currently generate 25% of the country’s total electricity production.

Often considered the model of geothermal development, Iceland continues to grow its

geothermal portfolio. With a small population, the country is currently generating 100% of its  power from renewable sources, deriving 25% of its electricity and 90% of its heating from geothermal resources.142 Seven geothermal power plants have been constructed in Iceland (six are currently operational) representing 575 MW of an estimated 4,255 MW of installable capacity.143 According to a recently released Iceland Geothermal Energy Market Report, “geothermal power projects represent the majority of planned capacity, or 1,068 MW of a total of 1,658 MW” planned energy capacity installations.144

The installed generation capacity of geothermal power plants  totaled  661 MW_e in 2012 and the production was 4,600 GWh, or 24.5% of the country’s total electricity production.

.Recent Geothermal Development Highlights

Icelandic geothermal producers Hitaveita Sudurnesja and Orkuveita Reykjavikur signed an agreement with Century Aluminum Co. to supply 250 MW geothermal electricity for aluminum production. The project, which will be commissioned in 2010, can be expanded to up to 435 MW. The IGA notes in its 2005-2010 Update Report that “this will be a very efficient way of exporting the surplus of cheap and abundant geothermal electricity production from Iceland.”145 ▪230 MW geothermal capacity is currently under construction.146

sources:

• http://www.nea.is/geothermal/
• http://www.renewableenergyworld.com/rea/blog/post/2013/03/geothermal-energy-in-iceland-too-much-of-a-good-thing
• http://www.islandsbanki.is/english/industry-focus/sustainable-energy/research-and-publications/