A growing heating and power demand
Current energy production areas do not support growth in demand for hot water based on projected population trends. There are also prospects for a significant expansion of the electricity market due to the goal of Iceland becoming carbon-neutral by 2040. The resources that are currently being used in the current production areas in the Hengil area have a finite life and, as it is, production there will decrease.
Before proceeding with further energy production, it is necessary to study and activate new geothermal resources, thus the application for the geothermal exploration license in Meitli and Hverahlíð II. Both fall into the utilization category of the framework plan, with utilization for electricity production and/or heat production in mind.
OR also requests that Orkustofnun provide a condition that gives priority for a utilization permit for heating supply for up to two years after the validity period of the research permit ends, and that no other party will be granted a research permit during that time.
Veitur, a subsidiary of OR, has an obligation to ensure sufficient water for the heating supply. As the population increases, the heating supply must also expand to provide for a growing demand for domestic heating. In the same way, the demand for electricity in Iceland has rarely been higher and Orka naturðurn, another subsidiary of OR, has played a major role in ensuring energy security and that the supply meets the large, and growing, demand.
“We at OR are on a research trip and make plans far into the future. There is a huge amount of uncertainty in the geosciences, and we want to try to minimize this uncertainty as much as we can by gathering more information,” said Hera Grímsdóttir, Executive Director of Research and Innovation at OR.
“Research into new geothermal resources needs to be carried out well in advance so that the resources can be seized in time to meet demand and continue the energy exchange journey that Icelandic society has been on for the past century.”
“OR and its subsidiaries place great emphasis on minimizing the impact on the environment, nature and society. The goal of the planned research is to be able to guarantee enough energy so that we can heat our houses and produce electricity in an environmentally friendly way for the future,” says Sævar Freyr Þráinsson, director of OR.
Just recently, OR had signed a memorandum of understanding with the municipality of Ölfus for a joint geothermal development.
