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6.2 Geothermal Resource Potential in Iceland In 2010, the National Energy Authority of Iceland estimated that an additional 4,300 MW of electricity can be generated from known high- temperature fields in Iceland. This would provide an additional 35 TWh of electricity per year.57 This estimate was developed as an input to Iceland’s Master Plan. The Master Plan examined 24 geothermal resources that are located near inhabited areas in the south, southwest, and northeast regions of Iceland. 6.3 Geothermal Projects in Iceland The Reykjanes Power Station illustrates Iceland’s approach to developing geothermal power plants. It has three characteristics that are shared by many of the geothermal plants developed in Iceland. First, the plant was developed by a government-owned and municipal-owned company. The Reykjanes Power Station was originally developed by Sudurnes District Heating or HS Orka, a company founded to develop district heating from geothermal sources in Iceland. The company was owned by the government (40 percent) and seven municipalities in the area (60 percent). It was later purchased by Alterra Power Corporation.58 Secondly, the plant was developed in an area whose geothermal resources were developed to provide district heating. In the Reykjanes geothermal field, drilling began in the 1950s, but power production drilling began in 1998.59 This meant that the geothermal resource was known and well-explored prior to the development of the geothermal power generation plant. Lastly, the Reykjanes Power Station is being developed using a phased approach. The plant currently has an installed capacity of 100 MW, but an additional 50 MW and 30 MW are planned. The Reykjanes Power Station is a 100 MW power plant located on the Reykjanes Peninsula.60 This plant began operations in May 2006. It generates electricity using two Fuji Electric 50 MW double- flow condensing units and is connected to the transmission grid via a 220kV transmission line. When all of the phases of the plant are completed, it is expected to produce 180 MW of electricity. This additional capacity will be provided by a 50 MW double-flow condensing unit, and then a 30 MW low-pressure turbine.61 The structure of the project is shown in Figure 6.1. 57. Orkustofnun, “Electricity Generation Capacity Is around 4300MW for High-Temperature Fields in Iceland,” accessed November 10, 2014, http://www.nea.is/the-national-energy-authority/news/nr/90. 58. HS Orka HF, “Our Objective,” accessed November 20, 2014, http://www.hsorka.is/english/HSCompanyInfo/HSCompanyHistory.aspx. 59. Alterra Power Corp., “Reykjanes: Geothermal Power Plant,” accessed November 20, 2014, http://www.alterrapower.ca/files/assets/_pdf/Icleandic%20Assets/Reykjanes%20Power%20Plant%20-%20Iceland.pdf. 60. Ibid. 61. Ibid. 39PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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