Iceland's Renewable Energy System

Mia Bennett
December 4, 2023

Submitted as coursework for PH240, Stanford University, Fall 2023

Introduction

Fig. 1: Krafla geothermal power plant in Iceland. (Source: Wikimedia Commons)

In a world threatened by climate change and rising energy demands, the small country of Iceland has become a global role model for sustainable and renewable energy practices. The country's 330,000 citizens rely almost exclusively on renewable energy, a rarity in an energy landscape dominated by coal, crude oil and natural gas. Hydropower and geothermal energy are the primary renewable sources of energy, with 90% of Icelandic households relying solely on thermal energy collected from the earth's interior, more commonly referred to as geothermal energy. This commitment to sustainability underscores Iceland's dedication to environmental stewardship and positions the nation as a worldwide exemplar for others striving to reduce their carbon footprint. [1-4]

The Energy Transition

Due to its rich natural resources, climate, terrain, and hydrological conditions, Iceland is well-situated to predominantly rely on renewable energy. In the 1900s, the majority of Iceland's citizens remained in rural locations, depending on traditional energy sources such as coal, oil, and peat. However, subsequent economic growth and urbanization of the nation forged the transition from imported energy sources to a rise in hydropower stations.

Geothermal energy plants became increasingly widespread in the early 2000s in response to the success of traditional local use of geothermal water for bathing. The country has a high geothermal gradient, allowing it to access geothermal energy more readily. Seven primary geothermal power stations spread across the country emerged (see Fig. 1), achieving both economic and environmental success and ranging from 3 - 303 MW of energetic capacity. Further, Iceland is home to the longest geothermal hot water pipeline in the world at 63 kilometers. This surge in reliance on geothermal energy not only reflected a growing commitment to sustainable energy, but also showcased Iceland's ability to adapt traditional practices for modern needs. As these stations thrived, they bolstered the nation's renewable energy security and set a global example for harnessing the Earth's natural resources responsibly.

It is important to note that the country has a diverse portfolio of renewable energy sources beyond hydropower and geothermal energy. These sources include wind, solar, tidal, energy biomass, organic waste gas, wastewater treatment, and biogas. Despite these strides, Iceland still relies on oil for crucial sectors such as land transportation, aviation, fisheries, and shipping. [1-4]

Calculations

Iceland's primary energy consumption in 2021 was 0.21 exajoules. Europe's primary energy consumption was 82.38 exajoules, with the total world primary energy consumption at 595.15 exajoules. Using these numbers, Iceland accounted for 0.255% of Europe's primary energy consumption and 0.35% of the global primary energy consumption in 2021.

However, because of its heavy reliance on renewable energy sources, Iceland only accounted for 0.064% of Europe's CO2 emissions from energy, and 0.005% of the world's CO2 emissions from energy. With Iceland producing 1.8 million tonnes of CO2 from energy production in 2021, Europe produced 2,793.7 million tonnes and the world produced a staggering 33,884.1 million tonnes of CO2. [5]

Conclusion

Iceland has declared its commitment to achieving full carbon neutrality by 2040 and, in alignment with the Paris Agreement, aims to reduce greenhouse gas emissions by 40% by 2030. With an impressive commitment to environmental stewardship, Iceland's diverse sources of renewable energy illustrate its pro-active energy transition, marked by the success of geothermal and hydropower stations. Iceland's strides in reducing CO2 emissions showcase the tangible impact that a dedicated focus on renewables can have on mitigating climate change.

© Mia Bennett. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] A. Mikhaylov, "Geothermal Energy Development in Iceland," Int. J. Energy Econ. Policy 10, 3135 (2020).

[2] K. Benediktsson, "Conflicting Imaginaries in the Energy Transition? Nature and Renewable Energy in Iceland," Morav. Geogr. Rep. 29, 88100 (2021).

[3] E. Barbier, "Geothermal Energy Technology and Current Status: An Overview," Renew. Sustain. Energy Rev. 6, 3 (2002).

[4]I. B. Fridleifsson, "Geothermal Energy For the Benefit of the People," Renew. Sustain. Energy Rev. 5, 299312 (2001).

[5] "BP Statistical Review of World Energy 2022," British Petroleum, June 2022.