Renewable Power in

Auður Nanna Baldvinsdóttir Specialist – Regulation & Economics in Iceland 2012 ••• 85% of was from renewable sources – 66% of primary energy is geothermal – Highest ratio in OECD - and probably in the world ••• still meets 13% of primary energy demand – About half to operate the fishing fleet – The other half largely for motor vehicles ••• 99% of houses heated with renewable energy

Power Production by Source 2012

Total Percentage

kWh %

Hydro 12.336.529.833 70,3 Geothermal 5.209.539.317 29,7 2.839.208 0,0

Wind 0 0,0

Total 17.548.908.358 100

Major Power Producers 2012 (GWh)

Landsvirkjun National Power Company 12,312

Reykjavík Energy 3,453

HS Orka 1,295

Orkusalan 259

Geothermal Electricity Generation

Electricity Generation (GWh/year) 5500 -

5000 -

4500 -

4000

3500 (7) Hellishei8i 303 MW — 3000 -

2500 -

2000 - (6) Reykjanes 100 MW

1500 - (5) HOsavik 2 MW 120 1v1 11..' 1000 -

500 -

1(1) Bjarnarflag 3,2 MW

1972 1977 1982 1987 1992 1997 2002 2007 2012

ORKUSTOFNUN National Energy Authority

Electricity Consumption 2011

Fishing Agriculture

Aluminium foils

factory Other

Industries Utilities

Residenta I

Consumption 5 %

Ferrosilicon Industry 6%

Public Services 6%

Aluminium Industry 71%

I 1 GWh

0 2.000 4.000 6.000 8.000 10.000 12.000

ORKUSTOFNUN National Energy Authority

Icelandic Primary Energy Use 1940-2011

Pi 250

Relative use 100 200 so Coal 80 70 60 150 50 40 30 Geothermal 20 10 100 0 1950 1970 1990

50

0 7) tD kr; :15 lT; 7) O72. O O U i vi (A (A --4 00 CO - O O 0 Ln 0 Ln 0 u1 O U i O

ORKUSTOFNUN National Energy Authority

Geothermal fields

Bedrock < 0.8 m. years High temperature field 0.8 - 3.3 m. years • Low temperature field 3.3 - 15 m. years

ORKUSTOFNUN National Energy Authority

Reykjavík in 1933

Wells in Reykjavík

Geothermal Energy Consumption 2011

Swimming pools Electricity generation 4% 40% Snow melting 4% I n d u s t r y

2% Li kk1/4._ Fish farming n 4% I

r

Space heating 45% Total 42,2 Pi

ORKUSTOFNUN National Energy Authority

Examples of Direct Use

Space Heating by Source

100% - 90% - 80% - 70% - 60% - 50% - 40% - 30% - 20% - Oil 10% -

0% -, 1970 1975 1980 1985 1990 1995 2000 2005 2010

ORKUSTOFNUN National Energy Authority

Energy Meets Tourism

••• In Iceland we have merged the tourist industry with our energy industry

••• The energy industry has opened its doors to all those interested in the development of renewable

••• ... a few examples...

Power plants with an open-door policy

Geothermal Beach

Artificial Hot Springs Iceland’s Energy Challenges

••• The primary challenge remaining is how to transition the transport sector and fishing fleet to a clean energy source

••• The Icelandic government has supported various research and demonstration programs for the transition from hydrocarbon

Oil consumption in Iceland 1982-2010 3 0 0 C  250 O sc

••• 200

VP

z c •

1 5 0 O t o r p

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2 002 2004 2006 2008 2010 — —    M a i i , Aviation Domestic 'Foreign fishing Other ocean ^ Construction Other industry — Other fishing vessels vesseh vessels

ORKUSTOFNUN National Energy Authority

Electricity as Fuel

••• Almost all electricity in Iceland is produced from renewable energy sources – 99.9%

••• This means that all use of electricity in transport, in Iceland can be fossil free from well to wheel

••• Possible to claim that no place is better suited than Iceland for the use of electricity in transport

•

• -

- •,; -. ••• = • Master Plan for the Utilization of Energy Resources

••• Parliament started the work in 1997 ••• Proposed power projects are evaluated and categorized on the basis of: – Energy efficiency and economics – Impact on the natural environment, culturalage herit sites, fishing, hunting and recreational activities – Implications for regional development – Priorities projects

Master Plan

••• Hydropower production could be increased by 26% ••• Electricity production from geothermal could be more than doubled ••• Greater degree of cohesion between viewpoints on developement of energy and protection of nature

Hydropower Plants in Iceland (>10 MW) Existing & To be developed by Master Plan

Existing To be developed 100 MW 200 MW 100 MW 500 MW 200 MW

National Energy Authority, Kristinn Einarsson, September 2011

Geothermal Power Plant (>10 MW)

To be Existing developed 50 MW 50 MW 100 MW 100 MW 200 MW 200 MW

National Energy Authority, Kristinn Einarsson, September 2011 Master Plan

Geo- Electric Power Potential thermal GWh/a

Hydro GWh/a

Electricity Production (2010) 12,592 4,465

Appropriate for Development 3,326 9,908

Existing & To be developed 15,918 14,373 Appropriate for Protection 7,745 17,765 Awaiting further Consideration 6,008 3,098

Total – Existing & Master Plan 29,671 35,236

The Research Project IDDP The hottest well in the World ••• By joining forces of key players Iceland has been able to pull off one of the most promising research projects.

••• The IDDP-1 well drilled in Krafla is at the moment the hottest well in the word with a temperature of °450C at 40 bar pressure and 12 kg/s steam flow on surface with an estimated 25-35 MWe electric production capacity

••• Second well in preparation in Reykjanes

••• Previously mentioned reserve estimates exclude supercritical resources

••• A new era in geothermal development – 400 -600 °C, superheated steam at up to 5 kilometer depth – 40-50 MWe from each well – First IDDP well at Krafla reached the target in temperature but not fully in pressure (too shallow) – Extensive research program in progress – 2nd & 3rd IDDP to be drilled within Hengill and Reykjanes fields. – Pilot plant testing planned in

continuaton of that

Thank you!

Role of Orkustofnun The National Energy Authority

••• Manages public administration of the energy sector and provides the government with specialised services ••• Handles long term planning for energy utilisation and energy systems ••• Contracts and conducts research on resource utilisation ••• Accumulates and maintains databases on energy utilisation

and forecasts for future trends

Role of Orkustofnun The National Energy Authority ••• Issues permits for exploration and utilisation of energy and earth based resources ••• Issues power plant licences ••• Regulates transmission and distribution companies ••• Is the official monitoring body for issued slicense ••• Handles fuel sector administration and aids in the transition to low carbon fuels ••• Administers The Energy Agency, The Energy Fund and special initiatives for geothermal exploration ••• Hosts the UNU University Geothermal Training Programme