Energy Resources in Iceland
Transcript of Energy Resources in Iceland
ORKUSTOFNUN National Energy Authority
Energy Resourcesin Iceland
Lárus Elíasson stepping in for:
Sveinbjörn Björnsson
Past and PresentPossibilities and Visions
Energy Resourcesin Iceland
Lárus Elíasson stepping in for:
Sveinbjörn Björnsson
Past and PresentPossibilities and Visions
ORKUSTOFNUN National Energy Authority
ContentsContents
• Administration• Economy and energy policy• Energy resources• Energy utilization• Energy and the environment• Future utilization• Summing up
ORKUSTOFNUN National Energy Authority
Administration of Energy AffairsAdministration of Energy Affairs
ORKUSTOFNUN National Energy Authority
Organisation of the Icelandic Electric Sector
The NationalPower
CompanyLandsvirkjun Regional
EnergyCompanies
MunicipalEnergyUtilities
Electrical SafetyAccreditation
StateElectricUtilityRARIK
Orku-stofnun(NEO)
Invest in IcelandEnergy Marketing
ParliamentGovernment: Ministry of Industry Municipalities
ÍSOR(Iceland
Geosurvey)
1998 o.toflure.ppt
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Role of the National Energy AuthorityRole of the National Energy Authority
• Contracts and conducts research in the field of energy– On hydrological conditions,– on the hydrological budget of Iceland’s freshwater and
geothermal resources, – as well as data on various natural and environmental
processes • Accumulates and maintains databases on the
energy resources• Disseminates knowledge on the exploration and
exploitation of geothermal resources to developing nations
• Administers energy affairs and advises the minister
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Financing of Energy ResearchFinancing of Energy Research
GovernmentBudget
GovernmentBudget
EnergyIndustryEnergyIndustry
PrivateConsultants
Energy Management
Energy Management
Energy ResearchEnergy
Research
Director Generaland
Services
Director Generaland
Services
Orkustofnun
ORKUSTOFNUN National Energy Authority
ISOR – ICELAND GEOSURVEYISOR – ICELAND GEOSURVEY
ISOR is a state-owned research and service institution in the field of energy and natural resources.
ISOR does not receive any direct financing from the state. It operates on the basis of research contracts with the energy companies, the state and others, like any other company on the market.
ISOR has 50 employees of 40 whom are highly qualified experts of international standard
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UNU Geothermal Training ProgramUNU Geothermal Training Program
• Operated in Iceland at Orkustofnun since 1979
• Assists developing countries in geothermal exploration and development
• Offers six-month specialized courses
• Total number of students 1979-2003: 300
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Icelandic Geothermal Activities AbroadIcelandic Geothermal Activities Abroad• Africa
– Burundi– Cape Verde– Djibouti– Kenya– Uganda
• Europe– Azores– Croatia– Georgia– Greece– Hungary– Poland– Romania– Russia– Slovakia– Slovenia
• Americas– Ecuador– El Salvador– Guadeloupe– Guatemala– Honduras– Nicaragua– USA
• Asia– P. R. of China (Tanggu,
Yunnan, Beijing, etc.) – Indonesia– Philippines– Turkey
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• Coordinates export of geothermal know-how and experience
• Established in 2000 reinforcing previous initiatives• Offers total solutions to harness geothermal
resources• Owners all major actors in geothermal in Iceland:
• Power companies• Consultants• Institutions
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Economy and PolicyEconomy and Policy
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Sustainable Resources: Backbone of the Icelandic Economy
• Iceland is highly dependent upon natural resources– Fish stocks– Energy sources
• The country’s exports of goods and services– still almost 50% fish and fisheries products– and currently about 25% products of energy-intensive industry
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Energy Utilization Policy of the Energy Utilization Policy of the Government Government
““To promote utilization of IcelandTo promote utilization of Iceland’’s clean and s clean and renewable geothermal and hydropower resources in renewable geothermal and hydropower resources in
harmony with the environmentharmony with the environment””Sustainable development based on Iceland’s renewable energy resources
to stimulate foreign investment
for diversification of the economy
and expand exports
thus improving the living standard of the people
ORKUSTOFNUN National Energy Authority
Basic Facts about Icelandic EnergyBasic Facts about Icelandic Energy
• Currently over 72% of all primary energy used in Iceland is renewable
– Highest ratio in OECD - and indeed in the world
• Electricity production and other stationary use of energy in Iceland is totally carbon free !
• Oil still needed for almost 30% of the primary energy demand– About half to operate the fishing fleet– The other half mainly for motor vehicles
• Iceland “cleaned up” prior to Kyoto– Fossil fuels eliminated from space heating– Therefore problems with Kyoto!– Acknowledged in Marrakesh
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Objectives of the Electricity ActObjectives of the Electricity Act
• Create conditions for competition in generation and sale of electricity
• Promote efficiency and rationalisation • Ensure security of the system and consumer
protection • Economical electricity system
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Energy UtilisationEnergy Utilisation
Blue Lagoon
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Primary Energy Consumption in Iceland 1940-2001Primary Energy Consumption in Iceland 1940-2001
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
PJ
0%
20%
40%
60%
80%
100%
1940 1950 1960 1970 1980 1990 2000
HydroHydro
GeothermalGeothermal
OilOil
CoalCoal
PeatPeat
HydroHydro
GeothermalGeothermal
OilOil
CoalCoal
Proportional consumptionProportional consumption
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Electricity consumption 1950-2002
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
GW
h/a
Power intensiveindustry
General consumption
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Development of Energy UtilisationDevelopment of Energy Utilisation
• First phase - until the 1970s– Electrification of the country (mainly by
hydropower)– Harnessing of most accessible geothermal fields
• Second phase - after 1965– Development of power-intensive industry
• Third phase - after 1973/74– Replacement of oil by renewable energy resources,
especially for space heating• Fourth phase - after 1995
– Further expansion of power intensive industry
ORKUSTOFNUN National Energy Authority
Energy ResourcesEnergy Resources
ORKUSTOFNUN National Energy Authority
Potential for Electricity Production (TWh/a)Potential for Electricity Production (TWh/a)
7%
1,4
20
Geo-thermal
23%
7,0
30
Hydro Together
17%In relation to econ. + env.
8,4Production in year 2002
50Economic and environmentally benign
0
5
10
15
20
25
30
Potential Production
Hydro
Geothermal
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Icelandic Electricity Potential in PerspectiveIcelandic Electricity Potential in Perspective
• Electricity potential of Iceland:– 50 TWh/a
• Average use in OECD:– 8 MWh/a per capita
• Electricity potential of Iceland:– For 6 million OECD citizens
(Icelanders are fewer than 300 thous.!)– More than the needs of e.g. Denmark
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HydropowerExisting and Potential
HydropowerExisting and Potential
Existing Power PlantsPlanned Power PlantsPotential Sources
ORKUSTOFNUN National Energy AuthorityORKUSTOFNUN National Energy Authority
Geothermal Electricity PotentialGeothermal Electricity Potential
High temperature areasPower Plant (in operation/planned)
Krafla 60 MWe /160 MWe
Bjarnarflag 3 MWe /40 MWe
Nesjavellir 90 MWe
Grændalur 0 MWe /20 MWe
Svartsengi 48 MWe
Reykjanes 0 MWe /100 MWe
/ 120 MWe + 2x40 MWe
GenerationStatus 2003: ~ 200 Mwe Near future: ~ 500 Mwe
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Iceland as a site for Deep Drilling
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Geothermalreservoir
at very high energy state
2,5 kmMax. sofar in Iceland
4 - 5 kmTarget depth
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Electric Power Generation
Conventionaldry-steam well IDDP well
Downhole temperature 235 °C 430 - 550 °C
Downhole pressure 30 bar 230 - 260 bar
Volumetric rate of inflow 0.67 m3/s 0.67 m3/s
Electric power output ~ 5 MWe ~ 50 MWe
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Energy and the EnvironmentEnergy and the Environment
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The Environmental Impact Assessment Process, administered by the State Planning Agency of Iceland
(PA)
The Environmental Impact Assessment Process, administered by the State Planning Agency of Iceland
(PA)
PA’s review of the SR Preparationof EIS* The PA’s review of EIS Appealing process
4 weeks 2 w. 6 w. 4 w. 4 w. 8 w.
Scoping report (SR)introduced
PA’s decision on the
Scoping report
The EIS is made available for the
public
Deadlinefor public
comments
PA’s decision
Deadlinefor appeal
Minister for the Environment’’s
decision
EIS to thePA
* EIS: Environmental Impact Statement
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Master Plan (MP) for Utilization of the Energy Resources
Master Plan (MP) for Utilization of the Energy Resources
• Proposed power projects are evaluated and categorized on the basis of– Energy efficiency and economic interests– Implications for regional development– Impact on the natural environment, cultural
heritage sites, grazing, fishing, hunting and recreational activities
• First phase, including all the major glacial rivers and the basic high temperature geothermal areas is finished
ORKUSTOFNUN National Energy Authority
Space heating by source 1970-2002
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1970 1975 1980 1985 1990 1995 2000
Fossil fuelsElectricity
Geothermal87%
11,5%1,5%
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Origin of Greenhouse Gas Emissions in 2000
TransportTransport
Fishing vesselsFishing vesselsIndustryIndustry
GeothermalGeothermalHouseholdsHouseholds
OtherOther
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Power ProductionPower Production
Aluminum ProductionAluminum Production
000
444
888
121212
161616
CoalCoal OilOilOil Natural gasNatural gas Hydro powerHydro power
CO2 emissions from primary aluminium smelting by energy source in kg per kg aluminium produced
CO2 emissions from primary aluminium smelting by energy source in kg per kg aluminium produced
Kg CO2 / kg AlKg CO2 / kg Al
E.g. Iceland!
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The FutureThe Future
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Potential Large Scale Use of ElectricityPotential Large Scale Use of Electricity
• Energy intensive industry– Aluminum smelters etc.
• Direct export via submarine cable– Is export of “raw material”– Hardly economically viable
• Production of synthetic fuels (hydrogen)– When technically and economically
feasible
ORKUSTOFNUN National Energy Authority
Power-Intensive Industry: Recent projects• 1997
– Expansion of ISAL aluminium plant (at the time the only one) from 100,000 to 160,000 tonnes/year
• 1998– A new aluminium plant, Norðurál, with initial production capacity
60,000 tonnes/year• 1999
– Expansion of the ferrosilicon plant from 70,000 to 115,000 tons/year
• 2000– Decisions on increasing Norðurál to 90,000 tons/year and of ISAL
to 200,000 tonnes/year• 2002/2003
– A contract signed with Alcoa on a new 322,000 tonnes/year aluminium plant in Reyðarfjörður
• 2002/2003– Decision on a further expansion of Norðurál to 180,000
tonnes/year
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Electricity Use in the Next Decade or soElectricity Use in the Next Decade or so
5
10
15
20
25
General consumption
Current power intensive industry (PII)
PII in progress
Synthetic fuels(acc. to Icelandic New Energy)
Fjarðarál(Alcoa)
Alcan
Possible further PII
Approx. half of power potential
Norðurál(Columbia Ventures)
Now!
TWh/
a
1990 2000 2002 2004 2006Year
2008 2010 2012 2014
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Electricity needed for replacing oil with hydrogen (assuming fuel cell efficiency)Electricity needed for replacing oil with hydrogen (assuming fuel cell efficiency)
Current domesticuse of oil and
gasoline
Hydrogen needsassuming fuel cells
Electricityfor
electrolysisThousand tonnes
annuallyThousand tonnes
annuallyGWh/a
Cars 200 30 1.600Ships 230 50 2.700Total 430 80 4.300
Equivalent to new Karahnjuka
plant for the Alcoa smelter
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70°
Bergen
Greenland
Edinburgh
Reykjavík
ReydarfjörðurIceland
Orkney
Germany
60°
50°
1170 km
2000 km760 km
1250 kmShetland
Faroe Islands
Scotland
Norway
Denmark
Sweden
NetherlandsEnglandGrain
Ireland
20° 0°10° 20°
Submarine CableSubmarine Cable
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Summing upSumming up
ORKUSTOFNUN National Energy Authority
Summing upSumming up
• Iceland has (relatively) abundantrenewable energy resources– These must be used to a greater extent to the
benefit of Iceland and mankind taking due consideration of the environment
• Iceland has experience and capabilities in geothermal and hydro power– We hope to export this know-how to a greater
extent– Even participate financially in foreign energy
projects