ENERGY IN ICELAND - Orkustofnun

2 Historical OVERVIEWof Energy AffairsThe beginningof energy useNational Museum of IcelandThe first car came to Iceland in 1904. Until thenthe Icelandic horse had been the only mode of landtransport for people and goods.Due to the scarcity of wood, themost widely used fuels in Icelanduntil the mid-20th century werepeat and dried sheep-dung, usedfor cooking and heating. Horsesprovided transport, and natural hotsprings were sometimes used forbathing and washing. Energy utilizationin the modern sense, however,only started with the industrial revolutionand the advent of mechanicalpower. Here, as in so many other areas,Icelanders were latecomers tothe scene. The age of mechanizationdid not start in Iceland until the turnof the 20th century with the arrival of steam trawlers, motor-powered fishing boatsand later automobiles. At that time the first hydropower generators were being builtand people experimented with piping, through which geothermal steam flowed toheat their houses.All this took place without much intervention of public authorities. During electrification,and the subsequent construction of district heating installations, however,the state and local communities played a major role. The first government initiativeconcerning energy appeared in the form of legislation on various aspects of energyaffairs in the early 20th century. In particular, the Inland Waters Act, adopted in 1923,is still in force to a large extent. It was regarded as both a necessary and naturalstep for the government to take the initiative in the utilization of domestic resources,10