EU-Iceland Geothermal Roundtable events, Brussels, Sept. 18-19, 2014

Geothermal HeatingAn option for EuropeBrussels 18 September 2014

Early geothermal use

Þvottalaugar hot springs in Laugardalur, Reykjavík. Picture taken around 1900.

Nesjavellir combined heat & power plant

Coal smog over Reykjavik ca 1940

Geothermal wells in Reykjavik today

100 years of geothermal district heating

• First district heating trials in 1907/ 1916 with big steps in 1970s• Reykjavik district heating largest in the world, 75 million cubic meters per

year of hot water to some 200,000 inhabitants. • Low-temperature fields in Reykjavik and its vicinity. Locally, 52 wells deliver

a total of 2,400 liters per second of 62–132°C hot water.

Icelandic geothermal development

• Early use of geothermal heat for bathing & laundry

• First district heating fueled by coal and oil, all imported

• Initial individual geothermal heating in 1908/ 1911

• 1930 first geothermal district heating system• 1960 decision to heat Reykjavik by geothermal• 1970 about 50% of homes heated by

geothermal • Oil crisis resulted in change in energy policy• Drive to utilization for heat and later electricity

Government role & funding

• State Electricity Authority and later National Energy Authority (Orkustofnun) lead efforts on geothermal research & exploration

• Work now outsourced to government owned Iceland Geological Survey (ÍSOR)

• Energy Fund (through merger of Electricity Fund & Geothermal Fund) since 1967

• Loans for geothermal exploration & drilling• If drilling failed to yield expected results, loans

converted to grants

Iceland use of geothermal

Space heating

45%

Electricity Generation

39%

Swimming Pools4%

Snow melting4%

Fish Farming4%

Industry2%

Greenhouses2%

Swimming pools

• …

• Swimming pools elementary part of social life, year round• 163+ recreational swimming pools, 134 thereof with geothermal heat• Overall 90% of swimming pool heated by geothermal based on surface area

Fish farming

Picture: mbl.is/ Helgi Bjarnason

• Salmon farming• Stolt Sea Farm: 75,000 m2, 500 tons of Senegalese sole• Largest investment in Iceland since 2008

Reykjanes Geo-Park/ Blue Lagoon

• One of National Geographic’s 25 wonders of the world• Largest tourist attraction Iceland with more than 600,000 visitors annually• R&D, skincare products, psoriasis medical facility

Greenhouses

• 194,000 m2 of greenhouse space, significant growth expected• Large plans for new greenhouse for organic tomatoes for UK market• Largest banana plantation north of the Alps

Economic impact of geothermal heating

• Savings of 7% of GDP annually or around EUR 2,200 per capita*

• Energy security through utilizing national natural resources

• Low energy prices for industry, businesses & consumers

*(based on cost for imported oil for heating purposes)

Iceland vs Europe

• Iceland: volcanic island, but in fact most of the geothermal resources used for heating are low temperature resources, e.g. within the city limits of Reykjavik

• European Union: to largest degree lower heat geothermal resources, which can be found across Europe but limited utilization compared to potential

Renewable heating in focus

• In the EU, 41% of natural gas use for heating buildings, 31% for industrial processes and under 25% for power plants.

• Renewable heating sources should be the focus for the future of Europe’s energy security.

• Until 2020 up to EUR 21.2 billion could be saved annually in avoided gas imports if targets for renewables in heating and cooling of 21.4% would be reached.

EU potential for geothermal district heating

• Geothermal district heating (GeoDH) potential in all EU-28 countries

• GeoDH can be built in many regions of Europe at competitive costs

• Paris and Munich two main metropolitan areas in terms of numbers of GeoDH systems in operation

• Large opportunities in Pannonian basin but also in Central and other Eastern European countries

• Geothermal can be installed with existing DH systems

GeoDH policy needs*

• Support measures to lift GeoDH onto the same level as other energy sources

• Compensation for market failure• Drilling support/ insurance/ grant• Generally new policy for the heat sector

– Best practices to promote geothermal– Utilize synergies between energy efficiency and

renewable heating & cooling– Remove barriers to competition– Abandon subsidies for fossil fules and long-standing

regulated price for gas*Source: Dumas, P., Angelino, L. (EGEC), Bossavy (AFPG), “EGEC Market Report 2013/ 2014”

District heating Eastern Europe

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Contacts:Ágústa Ýr Thorbergsdóttir, Ýr Consultingagusta@yrconsulting.is+354 899 0088

Alexander Richter, ThinkGeoEnergyalex@thinkgeoenergy.com+354 618 5304