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Image 3. Mid Atlantic Ridge through Iceland. Source: US Geological Survey In the case of Alaska, there is a convergence of tectonic plates that forces one plate to be subducted under the other plate. This causes melting along the subduction line resulting in the formation of volcanoes9. There is a third type of thermal hot zone which can happen on the interior of tectonic plates, which is caused by hot mantle material or thinner than normal continental crust. Iceland and Alaska are often compared because of many similarities, but it is important to note this geological difference because a subduction zone could cause higher development costs. History of Energy Development in Iceland Modern energy development in Iceland has really occurred in three phases10. The first phase was from 1940 to 1970 and was centered on adding electricity to the country through hydropower. The other side of this phase was the conversion of space heating from coal, turf and wood to geothermal in populated areas that were located close to geothermal resources. Although geothermal resources were used for a long time, the first commercial system was a district heating system in Reykjavik in 1930. It heated a school, hospital, swimming pool, and 70 homes. This type of development was focused on low temperature resources for direct heating. The first hydroelectric power was developed in 1904 and produced 9 kWs. By 1934, there were 5 MW of hydroelectricity being produced in 38 power stations. Figure 2 below shows the relationship of energy development from 1940-2005. The second phase of energy development was focused on the increase in energy intensive industry (EII). In the late 1960’s, the availability of power led to industries that require significant amounts of reliable energy to locate in Iceland. A state fertilizer plant opened in 1953 and began this process. The first aluminum smelter came online in 1970. Today, more than 90% of the electrical consumption comes from EII. More on this subject can be found in the next section. 9 Finger, John. Blankenship, Doug, 2012. 10 Steingrimmsson et al., 2006. 11PDF Image | Geothermal and Hydroelectric Energy in Iceland and Alaska
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