ENERGY IN ICELAND - Orkustofnun

Electricity productionThe demand for electricity in Iceland hasincreased considerably due to a large expansionwithin the power intensive industry.This demand has partially been metthrough increased electricity produced geothermally,as is shown in Figure 11. Of thetotal electricity generation of 8,680 GWh in2005, 1,658 GWh, or 19.1%, were producedfrom geothermal energy.Figure 9. Primary energy use in Icelandcompared to that in the rest of the world,calculated in ktoe, 2003.The first geothermal power plant with 3 MWinstalled power started operations in 1969,in Bjarnarflag, North Iceland. The plant isstill operating.The Krafla power plant in North Iceland hasbeen operating since 1977. For the first 20years its installed power was 30 MW. In theearly stages, volcanic activity caused a delayin the completion of the plant originallyplanned to its capacity. However, the capacitywas increased to 60 MW in 1997. As a resultof drilling exploration projects over theyears, the area’s estimated potential capacityhas increased, so a further increase of 40MW is under consideration.Figure 10. Utilization of geothermalenergy in Iceland, 2005.The Svartsengi co-generation power planthas been producing both hot water and electricitysince it started operations in 1977. Itis located on the Reykjanes peninsula, 40km from Reykjavik, and serves about 16,000people.The installed capacity for electricity productionin Svartsengi is 47 MW, and an expansionof 30 MW is planned. Furthermore, a100 MW power plant at Reykjanes is underconstruction by Hitaveita Sudurnesja.At the Nesjavellir high-temperature field,Reykjavik Energy is operating a co-generationplant. The plant started operations in1990 with the production of hot water for21