Friday, September 2, 2016

Iceland example shows cost-competitiveness of geothermal energy

Over the years Iceland has become something of a synonym for geothermal energy. This renewable energy source with vast potential is still in its infancy in many countries of the world while Icelanders are the ones incapable to imagine the life without geothermal energy and are very proud about their geothermal energy heritage.

Geothermal energy does not only provide electricity for Iceland, it is also used for heating purposes and is responsible for their lowest heating costs of all the countries in the Nordics.

Finland, Sweden, Denmark, Norway, all these countries have bigger heating costs compared to Iceland. According to one of the recent studies heating costs in Helsinki, capital of Finland, are five times higher compared to Iceland's capital Reykjavik.

In Reykjavik, the annual cost of heating for a 100 square meter apartment is $724, while in Helsinki the annual heating costs rise to $3,623.

Around 90% of all households in Iceland use geothermal energy for heating. With enough available resources this renewable energy source represents not only clean and environmentally friendly energy source, it is also cost-competitive, and even cheaper compared to conventional energy sources.

Other Nordic countries mainly use fossil fuels for heating purposes. The difference is huge, but on the other hand not all countries have the luxury of having such abundant geothermal energy resources at their disposal like Iceland does. In any case, in areas with significant geothermal resources, geothermal energy certainly deserves its chance to blossom, from both environmental as well as financial point of view.