ENERGY IN ICELAND Federico Tagliatti James D’Agostino

Geographicloca-onandfeaturesHistorybackgroundPopula-on(distribu-on,majorci-es)EconomyEnergyconsump-onandproduc-onEnergypoliciesGeothermalenergyHydroenergyEnvironmentalimpactInnova-vetechnology

•  IslandisthesecondlargestislandinEurope

•  40,000squaremiles(sizeofKentuckyandPortugal)

•  LocatednearArc-cCircle•  It’stheyoungestlandmass

ontheplanet•  SitsontheMid-Atlan-cRidge

(Thingvellir)•  Growingabout5cmperyear

Geography

Thingvellir2007

•  ContainsthebiggestglacierinEurope

•  62.7%istundra•  14.3%islakesandglaciers

•  22%isvegetated•  Climateisrela-velymild(NorthAtlan-cCurrent)

Geography

Demography

• Popula-onasofJuly2014-317,351people– 40.7%fromagesof25-54(workingclassaged)– Medianage36.4yearsold

•  93.7%ofthecountryisurbanized(2011)•  3.2peoplepersquarekilometerApril2015

– Versus33peoplepersquarekilometerinU.S.A.

Major Ci2es

•  ReykjavíkandtheCapitalarea•  Na-on’scapital,holds60%ofpopula-on

•  Akureyri•  LargesttownoutsideofReykjavik,centerfortrade,service,andcommunica-oninnorthernIceland

•  Ísa_örður•  OntheWestFjords,centerfortradeinwestIceland,townsurroundedbymountains

•  Egilsstaðir•  Newercity,foundedin1944,providesservicesineastIceland,knownforbeingcountry’sexecu-onplace,onthebanksofLakeLagar_ot

•  Höfn•  Populartouristdes-na-onbecauseitisclosetotowna-onalparks:VantnajokullandJokulsarlon

•  capitaliststructureandfree-marketprinciples•  extensivewelfaresystem•  seven-ethmostproduc-vecountryintheworldpercapitaUS$47,461in2013(itwastheseventhin2007beforethefinancialcrisisof2008)(Source:WorldBank)

• GDP5,330MillionUS$(2013)(Source:WorldBank)

Economy

2014GlobalGreenEconomyIndex

• About85percentenergysupplyinIcelandfromdomes-callyrenewablesources•  the2014GlobalGreenEconomyIndexrankedIcelandamongthetop10greenesteconomiesintheworld

•  2008economiccrisis•  3largestbankstakenintogovernmentadministra-on•  Collapseofbankingsector•  Deprecia-onofIcelandickrona•  Butdueto:

1.  Cleanenergy2.  Marineresources3.  Stronginfrastructure4.  Well-educatedworkforce

•  Signofrecoveryinthelast5years•  Unemploymentratehasdeclinedconsistentlysincethecrisis•  From8.1%(2010)to4.8%(2012)

Economy

•  BasicsectorsofIcelandiceconomy:1.  Servicies(accoun-ngfor71.2%ofGDP2013)2.  manufacturingindustries,construc-onandu-li-es(22.9%)3.  fisheries(5.9%)

•  Exportbaseisrela-velynarrowanddependsonnaturalresources:1.  fishing(40%ofexportearningsandemploys4,8%ofthework

force)2.  MetalsfromEnergyintensiveindustries3.  Tourism

•  IndustrialinvestmentsinIcelandhasgrownconsiderablysince1995•  GeothermalandHydropowersourcesalractforeigninvestments•  Investmentsarelikelytoincreaseinthefuture

Economy

ENERGY - Primary Energy •  236,000TJin2011•  750GJpercapita(2010)

•  PrimaryEnergy:•  15%imported•  85%domes-crenewable

•  Domes-crenewable:•  22%Hydropower•  78%Geothermal

•  Energyimported:90%petroleumproducts

Orkustofnun/Na7onalEnergyAuthorityofIceland

Electricitygenera-oninIcelandin2013:(GWh)•  Hydro: 12,863•  Geothermal:5,245• Wind: 5•  Fuel:3•  TOTAL 18,116(TOTpercapita57,100kWh)

ENERGY – Electrical Energy Genera2on

Hydro71%

Geothermal29%

Fuel/Wind0%

TheuseofElectricityin2013byIndustries

wasthe81%:•  Energyintensive:77.1%•  Other:3.9%

ENERGY – Electrical Energy Use

•  Evolu-onofIcelandoiluse•  2013:

•  Automobiles 43%•  Fishingvessel 23%•  Airplanes 25%•  Othervessels 4,5%•  Industry 3%•  Other 0,5%

Sta7s7csIceland

ENERGY – Oil use Unit:Kilotonnes

Energy Policy Summary

• Maingoalofallpolicyistoachievecarbonneutrality•  Eliminateuseoffossilfuelinallwayspossible• MaximizeuseofRenewableEnergy

Energy Policies

•  Tomakefulluseoftheabundantrenewableresourcesontheislandinasustainablemanner• Allelectricityandspacehea-ngcomesfromrenewablesources

– 87%ofspacehea-ngcomesfromgeothermalpower

• Byofferingcountryasasiteforpowerintensiveindustrieshelpsincreasesustainableenergyuse

*believethisinforma-onisfrom1999

Energy Policy

•  Toboostresearch,developmentandproduc-onofdomes-c,environmentallyfriendlyfuelandincreasethenumberofalterna-veenergyoutlets.TheaimistoenableIcelandtoleadthewayincomingyearsinexperimentsandproduc-onofenvironmentallyfriendlyenergysources,inpartbysuppor-ngresearchanddevelopmentandbuildingupinfrastructure.

•  Toencouragebelerenergyu-liza-on,forinstance,bydevelopingindustrialparksandfactories,hor-culturesta-ons,recyclingandotherac-vi-esu-lizingthesteamenergyofsustainablegeothermalplants.Toformulateacomprehensiveenergystrategy,aimedathavingrenewableenergysourcesreplaceimportedenergy.Aprecau-onaryandprotec-veapproachwillbefollowedinhydroelectricandgeothermalenergyproduc-on.Theenergystrategywillsupportdiversifiedindustry,emphasizingthedevelopmentofecologicallybeneficialhigh-techindustry.Theenergystrategywillaimatsustainableu-liza-on,avoidingforinstanceaggressiveu-liza-onofgeothermalareas.

Energy Policy

•  Prepara-onofanenergyefficiencyplanforbothcommercialenterprisesandhouseholds.Finaliza-onoftheMasterPlanforU-liza-onofRenewableEnergyResourcesassoonaspossibleandpresen-ngittotheAlthingithiscomingwintersothatitwillacquirealegalstatus.NofurtherdecisionswillbetakenconcerningpowerdevelopmentonthelowerreachesoftheRiverÞjórsáun-ltheMasterPlanisavailable.•  Promo-onoftransparencyinagreementsforenergysaleandwayssoughttoremovesecrecysurroundingenergypricestopowerintensiveindustries.Theaimwillbeequitablepricingofelectricityfordifferentindustrialsectors.

Energy Goals

•  Havingrenewableenergysourcesreplaceimportedenergy.•  Iceland‘senergyharnessingshallbesustainableforthegoodofsocietyandthepublic.•  Aprecau-onaryandprotec-veapproachwillbefollowedinhydroelectricandgeothermalenergyproduc-on.

•  Theenergystrategywillsupportdiversifiedindustry,emphasizingthedevelopmentofecologicallybeneficialhigh-techindustry.

•  Theenergystrategywillaimatsustainableu-liza-on,avoidingforinstanceaggressiveu-liza-onofgeothermalareas.

•  Toencouragebelerenergyu-liza-on,forinstance,bydevelopingindustrialparksandfactories,hor-culturesta-ons,recyclingandotherac-vi-esu-lizingthesteamenergyofsustainablegeothermalplants.

•  Connec-onoftheIcelandicelectricitysystemtoEurope,throughaninterconnector,shallbeexaminedfurther.

GeologicallyyoungCountryMidAtlan-cRidgeGreatvolcanicproduc-vity:•  200volcanoes•  20high-temperatureareas(250°Cwithin1000mdepth)

•  250low-temperatureareas(150°Cintheuppermost1000m)

•  600hotsprings(over20°C)ItalyandIcelandtheonlyhightemperaturegeothermalsourcesinEuropeIceland:apioneerforspacehea-ng

ENERGY – Geothermal

ENERGY – Geothermal

TheIcelandDeepDrillingProject(IDDP)•  StudyinKraflaarea•  penetratesupercri-calzones

•  reachhydrothermalfluidsattemperaturesrangingfrom450°Cto~600°C

•  drillingtoadepthofabout5kminsteadof2.5km

•  yieldsofapproximatley50MWepowerequivalentinsteadof5MWe(10-foldincrease)

•  Produc-on:5,200GWh(29%ofthecountry'stotalelectricityproduc-on)

•  Totalinstalledgenera-oncapacityofgeothermalpowerplants:665MWein2013(24.5%)

•  Mainplants:•  Hellisheiði(303MW)•  Nesjavellir(120MW)•  Reykjanes(100MW)•  Swartsengi(76.4MW)•  Krafla(60MW)

Source:OSORKUSTOFNUN(IcelandNa-onalEnergyAuthority)

ENERGY – Geothermal genera2on

•  Icelandworldleaderintheuseofgeothermaldistricthea-ng•  9/10householdsareheatedwithgeothermalenergy•  Spacehea-ngisthelargestdirectuseofgeothermalenergy•  2013:spacehea-ng43%ofthetotaluseofgeothermalenergy(46,700TJ/13,000GWh)

ENERGY – Direct use of Geothermal energy

•  Greatdevelopmentofgeothermalspacehea-ng-ll1985•  89%ofpopula-on•  10%electricity(districthea-ng)•  1%oil(morethan50%in1970)•  Propor-onusinggeothermaliss-llincreasing

ENERGY – Space hea2ng use of Geothermal energy

Produc2on

Hydroelectric Power •  71.8%oftotalelectricnetwork(2013)

•  12,863.0GWhInstalledcapacityandgenera-oninpublicpowerplants

•  Iceland'sprecipita-oncombinedwithextensivehighlands,hasanenormousenergypoten-alorupto220TWh/yr

•  AccordingtoElectricityAct,landsnet,aprivateenterprise,wasestablishedtoprovidetheelectricaltransmissionandsystemopera-onsservices,Landsvirkjunisthebiggestshareholderat65%

•  Onlytwoislandsarenotconnectedtona-on’selectricalgrid;GrimseyandFlatey•  Theseislandsusedieselgeneratorsforelectricity

•  Allhydro-plantslargerthan1MWmustbeconncetedtothena-onalgrid•  Allsmallerplantscanselltheirproduc-ontothegrid

Hydroelectric Power

•  Landsvirkjunislargestcompanytoproduceenergyat12,469GWh– Alributesto75%ofthegrid

•  ThereisEnvironmentassessmentimpactactthathasafinalsayonifaprojectforanewplantwillcon-nue– Ifitisdeemedthereistoolargeofanimpacttheplantwillbeshutdown– AllIcelandersareen-tledtosubmitcommentstotheenvironmentalimpactassessmentofeveryproject.Thissupportsdemocra-cdecisionmakingandanopenpublicdebate.

Landsvirkjun Hydro-Plants •  Blanda-150MW•  Búðarháls–95MW•  Búrfell-270MW•  Fljótsdalur-690MW•  Hrauneyjafoss-210MW•  Irafoss-48MW•  LaxaI/ll/lll-5/9/13.5MW•  Vatnsfell–90MW•  Ljosafoss-16MW•  Sigalda–150MW•  Steingrimsstöð-27MW•  Sultartangi-120MW

Capacityofallplants

Environmental Impact

• AirqualityinIcelandisgenerallygood,butpar-culatemaler(PM)pollu-onfromroadtraffic,withsporadicaddi-onsfromvolcanicash– some-mesexceedsEUlimitvalues– InReykjavikregionhydrogensulfideisproblema-cfromgeothermalplants

•  Iceland'sgreenhousegasfootprint(intonnesofcarbonpercapitaperyear)isrela-velyhighcomparedtoother(TheOrganisa-onforEconomicCo-opera-onandDevelopment)OECDcountries.– Impactishighduetodependenceonfossilfuelfortransporta-onandfishingandmetalsmel-ngindustry

Environmental Impact

•  Tourismisanotherissuecausinggrowingenvironmentalconcern.– Thenumberoftouristsvisi-ngIcelandperyearwillsoonamounttothree-mesthecountry'spopula-on.– Alltouristtendtovisitthesamesights

•  Increasingdebateandcontroversyoverbothhydro-electricprojectsandgeothermaldevelopmentshavebolsteredthescopeforalterna-veenergysolu-onssuchaswindpowerand-dalenergy.

CO2 Emissions Emissionofcarbondioxide(CO2)bysource2005–2012

Tonnes Man-madeemissions(withoutcarbonsequestraKon),grandtotal 3,324 FuelcombusKon,total

1,491

IndustryandconstrucKon 172

Roadtransport 782

Othertransport 35

Fishingvessels 485

OthercombusKon 17

Industrialprocesses,total 1,653

Metalindustry 1,651

Otherindustry 2

Solventandotherproductuse 3

Waste 7

GeothermalPowerPlants 170

*6.2metrictonspercap-ain2010

Greenhouse Gas

Greenhousegasemissions1990-2012

1000TonnesinC02equivalentsMan-madeemissions,total 4,469CO2

3,324CH4 457

N2O 458

HFC 144

PFC 80

SF6 6

GreenhouseGasemissionsbyCategorythousandsoftonsofCO2equivalent

1990 2012

•  Useoffossilfuelforprivatetransporta-onandfishing:•  1/3ofCountryCO2emissions•  9/10ofallimports

•  Alterna-ves:•  Biofuels•  Baleryvehicles•  Hydrogenvehicles

•  SurplusofenergyusedtoproduceHydrogen(gas)• WindtoproduceHydrogen

ENERGY – Hydrogen as an alterna2ve fuel

SmartH2project:

theprojectaimistotestvarioustypesofHydrogen-fuelled

companycarsandotherequipmentrunningonHydrogen(Hertzcar

rentalsandturistboats)EctosProject:

Reykjavíkhasapilotprojectofabusfleet

hydrogenfuelled:3busesand1fuelsta-on(Shell)

References hLp://www.dualci2zeninc.com/global-green-economy-index/ hLps://www.cia.gov/library/publica2ons/the-world-factbook/geos/ic.html hLp://data.worldbank.org/indicator

hLp://askjaenergy.org/iceland-introduc2on/energy-data/ hLp://www.atvinnuvegaraduney2.is/media/Skyrslur/NREAP.pdf hLp://www.os.is/media/eldri-utgafa/EnergyinIceland_2003.pdf hLp://www.nea.is/the-na2onal-energy-authority/energy-sta2s2cs/primary-energy/ hLp://www.sta2ce.is/Sta2s2cs/Manufacturing-and-energy/Energy hLp://www.distreLoenergierinnovabili.it/der/s/geotermia-news/no2zie/geonews/il-calore-della-terra-dell2019islanda/ hLp://map.ren21.net/