Iceland's Energy Strategy

Question 1

What is the UN definition for sustainability?

Answer 1

Sustainability is meeting the needs of the present without compromising the ability of future generations to meet their own needs

Question 2

Following the UN definition of sustainability, what would a sustainable energy strategy entail?

Answer 2

A sustainable energy strategy would be:

• A long-term energy supply
• Accessible, affordable, safe
• Minimises environmental impacts

Question 3

Iceland has the ___ ___ ___ ___ ___ globally and is also ___ ___ ___ in renewable energies.

Answer 3

Iceland has the highest per capita energy consumption globally and is also a world leader in renewable energies.

Question 4

How does climate influence energy demand?

Answer 4

Colder temperatures and shorter daylight hours in winter directly correlate with increased energy demand.

Question 5

What type of climate does Iceland have?

Answer 5

Iceland experiences a cool, maritime, temperate climate

Question 6

How do temperatures vary in Iceland between summer and winter?

Answer 6

• Average summer temperatures range between 8°C to 15°C (July)
• Average winter temperatures range between -3°C to 3°C (January)

This results in high energy consumption for space heating and hot water during cold weather
(although this is supplied as hot water from geothermal energy - primary energy mix)

Question 7

How do winter daylight hours affect energy demand?

Answer 7

During the summer, Iceland experiences nearly 24 hours of daylight, whereas in winter, daylight hours can be as short as 3-4 hours each day.

This drives the demand for electricity for lighting, and extended use of electrical devices.

Question 8

How does primary industry influence Iceland’s energy demand?

Answer 8

Iceland’s significant energy consumption is primarily attributed to heavy industry.

• Aluminium smelting accounts for 66% of Iceland’s total energy consumption
• 800,000 tonnes of aluminium processed in Iceland per year at three different sites in the country

Question 9

Which financial incentives encourage the growth of data technology services in Iceland?

Answer 9

Government-sponsored incentives such as:

• Lower corporate tax rates
• Competitive land prices
• Tax credits for research and development.

Question 10

How does the Icelandic climate encourage the growth of data technology services in Iceland?

Answer 10

• The rise of cryptocurrencies like Bitcoin require a substantial number of computers to process complex instructions and transmit data for mining new currencies
• Such operations generate significant energy demand, produce substantial waste heat and require continuous cooling to maintain efficiency
• The Icelandic climate - availability of energy, water and cold air, provide an ideal environment for reducing space cooling costs, eliminating the need for air conditioning and reducing energy input.

Question 11

Why is the transport sector the largest consumer of fossil fuels in Iceland?

Answer 11

• Iceland is reliant on imported oil for transportation.
• The population heavily relies on private cars, with limited public transport options outside of Reykjavik, the capital city, where 80% of the population resides.

Question 12

How has Iceland planned to decrease its dependence on imported oil?

Answer 12

• The Climate Action Plan of Iceland emphasises the transition to zero-emission electric vehicles as they are increasingly recognised as financially and environmentally preferable for consumers, companies and public services

Question 13

How have electric vehicle charging points across Iceland encouraged transition to electric vehicles?

Answer 13

• Orka náttúrunnar (ON), an Icelandic energy company, has invested in a network of energy charging points across the country, supported by government incentives. This is becoming a viable option as the range of EVs surpasses 500km.

Question 14

In ____, __% of all cars sold in Iceland were electric vehicles, and ____ __% of the country’s passenger vehicles were at least partly electric.

Answer 14

In 2021, 58% of all cars sold in Iceland were electric vehicles, and over 13% of the country’s passenger vehicles were at least partly electric.

Question 15

How is public transport being coverted to electric power in Iceland?

Answer 15

• The ferry that connects the Vestmannaeyjar (Westman) Islands with the mainland can now operate entirely on electricity during favourable weather conditions, and electric public buses are increasingly being deployed in the capital city.

Question 16

How does Iceland’s location influence its geothermal energy supply?

Answer 16

• Iceland is situated on a constructive (divergent) plate boundary between the Eurasian and North American plate.
• Iceland is situated on a mantle plume hotspot.
• This leads to increased tectonic activity increasing the potential for geothermal energy through the presence of magma close to the surface of the crust.

Question 17

The percentages of Iceland’s secondary energy mix are:
__% Hydroelectric power
__% Geothermal power
__% Other sources including wind and oil

Answer 17

The percentages of Iceland’s secondary energy mix are:
70% Hydroelectric power
29% Geothermal power
<1% Other sources including wind and oil

Question 18

___________, with a capacity to produce ___MW of electricity, is one of ___ major geothermal power plants in Iceland (out of over 30 in total) that provide a reliable base lodge of electricity.

Answer 18

Hellisheiði, with a capacity to produce 300MW of electricity, is one of six major geothermal power plants in Iceland (out of over 30 in total) that provide a reliable base lodge of electricity.

Question 19

Is geothermal energy carbon-neutral?

Answer 19

Although geothermal energy is renewable, and helps mitigate 40,000 tonnes of CO2 emissions compared to an equivalent coal-fired power station, it is not carbon-neutral.

Question 20

How are carbon dioxide emitted from geothermal power plants such as Hellisheiði?

Answer 20

• Geothermal fluids at Hellisheiði contain non-condensable gases, primarily CO2 (95%) which are emitted as part of the process.
• Carbon emissions are created from construction of the power plant, both from construction equipment as well as from concrete.
• Innovations such as Carbfix aim to capture and inject this CO2 into basaltic bedrock where it mineralises.

Question 21

Why is hydroelectric power the largest provider of Iceland’s electrical energy?

Answer 21

• Precipitation can exceed 4000mm of rainfall per year in the mountainous regions of Iceland.
• Presence of ice caps and glaciers (covering 11% of Iceland’s land mass) offers significant water flow in spring and summer for hydroelectric power generation

Question 22

How many hydroelectric power plants are there in Iceland?

Answer 22

Currently, there are 37 large hydroelectric power (HEP) stations and over 200 smaller sites in Iceland.

Question 23

How will climate change affect energy production?

Answer 23

Climate change is expected to cause increased ice melt, resulting in increased river flows which could support further electricity generation if this is storable.

However, if the ice does not reaccumulate, there could be reduced flow in the future, impacting long-term electricity production

Question 24

How does Carbfix work?

Answer 24

At the Hellisheiði Power Plant in southern Iceland, CO2 emissions are captured and dissolved in water, resulting in an acidic solution.

This carbonated water is then injected into reactive rocks such as basalt, underground, where it interacts with the rock, releasing calcium, magnesium, and iron cations.

Over time, these elements combine with CO2 and mineralise within the rock, forming stable compounds that can remain locked away for thousands of years.