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Krafla Mývatnssveit power plant electricity
Photo: Páll Stefánsson. A power plant in North Iceland.

More Energy Needed to Ensure Green Transition, Government Report Indicates

Iceland will have to increase energy production by 125% in order to achieve a full transition to green energy, a new government report indicates. Iceland’s Environment Minister says the report can be used as a basis for decision making, but it is up to authorities how they apply the information provided. The CEO of the Icelandic Environment Association has stated that building additional power plants entails sacrificing Icelandic nature and is not a necessary step toward achieving the country’s environmental goals.

“It’s clear that this is necessary if we are to achieve the energy transition, Iceland’s Minister of the Environment, Energy, and Climate, Guðlaugur Þór Guðluagsson, stated. “However, there are many ways to achieve that goal. And this is not a policy. It is, however, a status report and highlights how things stand. Now it is up to the Parliament and the government to work it out, how to best handle this issue.”

Innovation depends on energy availability

The report proposes six scenarios for the future of energy production in Iceland, five of which entail increasing energy production. Only four scenarios assume that the country will achieve a full energy transition by 2040: that is, completely stop the use of fossil fuels within the next 18 years. If this goal is taken into account, and a rise in energy-intensive industry is assumed, then Iceland will need to produce 125% more energy than it does today. Ensuring those energy needs are met would not only require additional power plants, but increased efficiency at existing plants, energy-saving measures, and more efficient energy usage.

Read More: Iceland’s Plan to Become Carbon Neutral by 2040

Energy production is also a key factor in innovation and job creation across Iceland, according to Sigríður Mogensen, a department head at the Federation of Icelandic Industries, and one of the authors of the government report. “Many projects have been in the works and in development, whether it is food production projects, biotechnology projects, algae cultivation, and I could go on, which have unfortunately not been possible due to a lack of electricity or the weak state of the electricity transmission system.”

Entails sacrificing Icelandic nature

“It’s a question of what decisions we make. If this becomes a reality, then we’re making the decision to sacrifice Icelandic nature,” Auður Önnu Magnúsdóttir, CEO of the Icelandic Environment Association, stated in response to the report. She does not agree that a 125% hike in energy production is necessary in order to achieve a full energy transition.

Auður has argued for “real energy-saving measures, such as diversifying tourism, coastal shipping, such as building passive buildings, using heat pumps, and taking real energy efficiency measures, such as using waste heat from power plants. Today, 80% of the energy that is produced, it goes directly to big industry. That is not sensible prioritising.”

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