GeoEnvi: the many economic benefits Iceland got from using geothermal energy

Economic benefits of geothermal district heating in Iceland (source: Iceland National Energy Authority)
Alexander Richter 21 Oct 2020

The use of geothermal energy for district heating has had tremendous economic benefits for Iceland, as pointed out in a good article today by GeoEnvi.

The economic benefits of the Icelandic government’s policy to increase the use of geothermal energy can be seen when the cost of hot water for houses is cheaper than if oil would be used. The average annual savings have been 2.6% of GDP between 1950 and 2016. This a massive saving for all citizens, as they economized about ISK 1 million per each 4-people family.

Geothermal resources has also contributed to the development of different economic sectors: fish drying, production of goods made from fish offal, farming warm-water flat fish, traditional and health-related tourism, natural treatments for skin disorders, algae farming, eco-friendly cosmetics, providing clean energy for hotels, households, greenhouses and any kind of buildings.

This news piece was published as part of  is part of our #GEOENVI #ThisWeeksGoodNews campaign on the many benefits of geothermal energy.

For the full report on the “Economic benefits of using geothermal energy instead of oil for space heating in Iceland (pdf)” by Iceland’s National Energy Authority of 2019.

Source: Geoenvi