Iceland is now focusing its efforts on the transport sector, which is the next step towards renewable energy development. A recent explosion in the number and quality of electric cars shows that people are looking for climate-friendly alternatives. It is expected that the country will produce 60 percent of its new vehicles with clean-energy by 2020. That's an increase from just 28 per cent in 2019. Iceland has also pioneered carbon capture, utilization, storage (CCUS), techniques. Carbfix is a process which binds CO2 to rock. This takes around two years and yields renewable methanol.
Geothermal energy
Iceland has a long tradition of using geothermal energy to generate energy. The country exports its technical knowledge and has one the highest penetration rates for geothermal energy to generate electricity. The geothermal power stations in the country produce electricity by hot water directly from Earth. There are several geothermal plants, including Svartsengi which has been in operation since 1974. Svartsengi is able to generate 75 megawatts from 12 wells. It also supplies thermal fluids for district heat.
Local entrepreneurs started the process of developing geothermal energy. In the beginning of the 20th century, an Iceland farmer created a primitive heating system using geothermal energy. This was very popular and was soon adopted by many municipalities. Other municipalities followed suit, and with the advancement of drilling technology borrowed from the oil industry, it became possible to drill deeper and produce hotter water for use in heating homes. Geothermal electricity generation increased significantly in Iceland as it developed energy intensive industries.
Hydroelectricity
Hydroelectricity and geothermal heat are the main energy sources in Iceland. Both of these energy sources can be used to generate hot water and are renewable. Geothermal heat and hydroelectricity are used to heat the country and power homes and industry. Iceland's national grid is insufficient to supply electricity that meets the country's needs.
The potential for geothermal energy and hydroelectricity in Iceland is enormous. It has plenty of geothermal resources and can produce far more energy than its needs. Iceland is well-placed to build submarine transmission cables to connect to its electrical grid with the U.K. This technology can be a reliable source for electricity and could even be used to model other countries.
Iceland's unique geology makes it possible to create renewable energy from different sources. The country is located on the Mid-Atlantic Ridge. This is one of the most tectonically active areas in the world. There are more than 200 active volcanoes and 600 hot springs. Most of these fields have temperatures of over 250 degrees Celsius. These features make it possible harness geothermal heat and hydropower from glacial rivers and waterfalls.