Iceland expands geothermal exploration to boost energy security and economic growth
Iceland’s government launches an initiative to expand geothermal heating in cold regions where homes still rely on electricity or oil for heating.
The Icelandic government is ramping up efforts to expand geothermal energy utilization, particularly in cold regions where communities still rely on electricity or oil for heating. This initiative, announced by Minister of the Environment, Energy, and Climate, Jóhann Páll Jóhannsson in a meeting today, is a key step toward enhancing energy security, reducing costs, and maximizing Iceland’s geothermal potential.
Addressing energy gaps in cold regions
Despite Iceland’s reputation as a global leader in geothermal energy, around 10% of households remain disconnected from geothermal district heating. The new exploration program aims to bridge this gap by identifying and developing new geothermal resources in regions where geothermal has been underutilized. We reported on more recent efforts in the Westfjords of Iceland, but also in the East in Höfn.
Economic benefits of geothermal expansion
A recent report commissioned by the Icelandic Ministry of the Environment, Energy, and Climate suggests that enhancing geothermal utilization could generate up to ISK 8 billion (USD 58 million) in annual economic benefits. This would come from:
- Lower heating costs for homes and businesses.
- Reduced reliance on fossil fuels and electricity subsidies.
- Increased energy independence through expanded geothermal district heating.
“By optimizing geothermal utilization, we can strengthen energy security, reduce costs, and enhance environmental sustainability,” said Minister Jóhannsson.
Government and industry collaboration
The initiative has gained strong political and industry support, with remarks at the launch event from Íris Róbertsdóttir, Mayor of Vestmannaeyjar and Vilhjálmur Hilmarsson, Chairman of the Icelandic Climate and Energy Fund
The event w liveasstreamed on the Icelandic government’s website, allowing the public to follow the discussion on expanding Iceland’s geothermal footprint.
A strategic move for Iceland’s energy future
The government’s geothermal push aligns with Iceland’s broader renewable energy goals, which include:
- Expanding district heating in remote areas.
- Investing in new geothermal research and drilling projects.
- Ensuring long-term sustainability and cost efficiency in Iceland’s heating system.
With continued investment in geothermal energy, Iceland is taking concrete steps toward a more resilient, sustainable energy future—one that benefits both local communities and the national economy.
The event was be streamed live and a recording (Icelandic) is available on the Icelandic government’s website.
Source: Government of Iceland, mbl.is
Note: This article was adapted to now include the details shared in the meeting.
