Above is the cluster map of the geothermal energy sector in Iceland which was issued by Michael Porter, a professor at the Harvard Business School 2016. It shows all the detailed and important links of the geothermal energy value chain.
Iceland’s first geothermal power plant started operation in 1969, followed by two larger plants in 1978 and 1979.
With a total installed geothermal power generation capacity of 755 MW, Iceland is among the top 10 countries in the world when it comes to electricity generation from geothermal. In terms of direct use, Iceland has developed into a role model both with its extensive use for district heating (90% of all homes are heated by geothermal energy), but also in the cascaded use of geothermal heat for bathing and swimming, greenhouse operations, fish farming and more. Icelandic players have an extensive history of supporting development internationally. Through the Geothermal Training Program of UNESCO (formerly UN University), Iceland has supported the build-up of capacity in developing countries around the world contributing to large-scale development, e.g. in Kenya and other regions of this world.
What is geothermal energy?
Geothermal energy is thermal energy generated and stored in the Earth. The geothermal energy of the Earth’s crust originates from the original formation of the planet. Geothermal is location specific i.e. a resource must exist. Access to the resource is gained by drilling and getting access to steam or hot water. Geothermal is a base-load renewable energy resources.