Taming the Elements—The Use of Geothermal Energy in Iceland

Abstract

Harnessing geothermal water was an unlikely way to take on a pressing problem in Iceland: substitute oil and coal in the late thirties. As a reaction to the oil crisis in the 1970s, measures were taken by national authorities to substitute unsustainable energy. The transition was a success. The space heating system was and is based on a system for extracting and distributing geothermal water which had been strengthened in the early sixties and for the most part a fully publicly financed endeavour. In the turn of the century, as a part of the surge of privatisation in the neighbouring countries and the importance of competition, measures were taken to build technologically advanced large-scale geothermal power plants which turned to be a showcase of advanced technical knowledge but a financial disaster. In recent decades the diverging understanding of geothermal water as an energy source versus the embeddedness of the varied use of geothermal water is becoming ever more apparent and a pressing policy issue. Focus on sustainability, new technological solutions, such as smart micro-grids, and increased tourism are more compatible with the varied and embedded use of geothermal water as opposed to using geothermal resources to produce energy as a part of a large-scale technological system.