[Laying an underwater
cable from the North Atlantic would probably cost more than $2 billion, and the
idea is not popular with those who worry about Iceland — a country that takes
pride in living by its own means in harsh isolation — becoming an ice-covered
version of Middle East nations addicted to easy money from energy exports.]
 |
Ilvy Njiokiktjien for The New York Times
Steam spews from the Hellisheidi geothermal plant in Iceland,
which is studying the viability of selling electricity to Europe.
|
KRAFLA, Iceland — Soon after work began here on a power plant to harness some of
the vast reserves of energy stored at the earth’s crust, the ground moved and,
along a six-mile-long fissure, began belching red-hot lava. The eruptions
continued for nine years, prompting the construction of a stone and soil
barrier to make sure that molten rock did not incinerate Iceland’s first geothermal power station.
While the menacing lava
flow has long since stopped and Krafla is today a showcase of Iceland’s
peerless mastery of renewable energy sources, another problem that has dogged
its energy calculations for decades still remains: what to do with all the
electricity that the country — which literally bubbles with steam, hot mud and
the occasional cloud of volcanic ash — is capable of producing.
In a nation with only
320,000 people, the state-owned power company, Landsvirkjun, which operates the
Krafla facility, sells just 17 percent of its electricity to households and
local industry. The rest goes mostly to aluminum smelters owned by the American
giant Alcoa and other foreign companies that have been lured to this remote
North Atlantic nation by its abundant supply of cheap energy.
Now a huge and
potentially far more lucrative market beckons — if only Iceland can find a way
to transmit electricity across the more than 1,000 miles of frigid sea that separate
it from the 500 million consumers of the European
Union. “Prices are so low in Iceland that it is normal that we
should want to sell to Europe and get a better price,” said Stein Agust
Steinsson, the manager of the Krafla plant. “It is not good to put all our eggs
in one basket.”
What Landsvirkjun
charges aluminum smelters exactly is a secret, but in 2011 it received on
average less than $30 per megawatt/hour — less than half the going rate in the
European Union and barely a quarter of what, according to the Renewable
Energies Federation, a Brussels-based research unit, is the average tariff,
once tax breaks and subsidies are factored in, for “renewable” electricity in
the European Union. Iceland would not easily get this top “renewable” rate,
which is not a market price, but it still stands to earn far more from its
electricity than it does now.
Eager to reach these
better paying customers, the power company has conducted extensive research
into the possibility of a massive extension cord — or a “submarine
interconnector,” in the jargon of the trade — to plug Iceland into Europe’s
electricity grid. Such a cable would probably go first to the northern tip of
Scotland, which, about 700 miles away, is relatively close, and then all the
way to continental Europe, nearly 1,200 miles away. That is more than three
times longer than a link between Norway and the Netherlands, which is currently
the world’s longest.
Laying an underwater
cable from the North Atlantic would probably cost more than $2 billion, and the
idea is not popular with those who worry about Iceland — a country that takes
pride in living by its own means in harsh isolation — becoming an ice-covered
version of Middle East nations addicted to easy money from energy exports.
Backers of the cable
“are looking for easy money, but who is going to pay in the end?” said Lara
Hanna Einarsdottir, an Icelandic blogger who has written extensively on the
potential risks involved in geothermal energy. “We will all pay.”
Iceland, Ms.
Einarsdottir said, should use its energy sources to “supply ourselves and
coming generations” and not gamble with Iceland’s unique heritage by “building
more and more plants so that we can provide electricity to towns in Scotland.”
The idea of somehow
exporting electricity to Europe has been around for decades and has been
“technically doable for some time,” said Hordur Arnarson, the power company’s
chief executive, “but it was not seen as economically feasible until recently.”
The change is largely because of a push by the European Union to reduce the use
of oil and
coal and promote green energy, a move that has put a premium on electricity
generated by wind, water and geothermal sources. The union’s 27 member states
agreed in 2009 to a mandatory target of deriving at least 20 percent of its
energy from “renewable sources” by 2020.
A connection to Europe
would not only allow Iceland to tap the export market but also to import
electricity from Europe in the event of a crisis, a backup that would allow it
to stop keeping large emergency reserves, as it does now.
“This is a very
promising project,” Mr. Arnarson said. “We have a lot of electricity for the
very few people who live here.” Compared with the rest of the world, he said,
Iceland produces “more energy per capita by far, and it is very natural to
consider connecting ourselves to other markets.”
For example, in the
region around the Krafla plant, where Landsvirkjun is due to build a second
geothermal power station, there are just 400 residents. The only nearby
business is a health complex with a big outdoor pool and saunas, but it does
not use much electricity, as its hot water and heating all come from the
ground. Most Icelandic homes and offices, once reliant on coal- and wood-fired
furnaces, are now kept warm by geothermal energy.
Whether Iceland pursues
the cable project depends on a government committee now reviewing the idea. “If
there is not a broad consensus, we won’t do it,” Mr. Arnarson said.
But pressure to find new
markets for its electricity is growing as the gap between plentiful supply and
tepid local demand widens. Parliament in January approved a new energy “master
plan” that gives a green light to at least 11 new geothermal power stations and
two additional hydroelectric projects.
“I keep asking the same
question over and over again: what are we going to do with all this
electricity?” said Gudmundur Ingi Gudbrandsson, head of the Icelandic
Environment Association. The answer, he said, used to be that aluminum smelters
needed it, but “they now say we will sell it to Europe.”
His own and 10 other
environmental groups joined together last year to warn that “the so-called
profit of constructing a sea cable has been painted in bright colors as one of
Iceland’s biggest-ever business opportunities,” but that it would have an
“enormous environmental impact” through the construction of new power plants
and overhead power lines.
Geothermal energy, Mr.
Gudbrandsson said, is “certainly cleaner than coal, gas or oil” in terms of the
carbon emissions that contribute to global warming. But building huge plants to
harness it, often in remote, vulnerable areas, “definitely hurts the
environment.”
The minister responsible
for energy, Steingrimur Sigfusson, who is also leader of the Left-Green
Movement, thinks that Iceland should focus on using its electricity to develop
industrial-scale greenhouses, fish farming and other productive ventures, not
to power homes and factories in Europe. “We need to create jobs, not rely on
bulk exports,” he said.
Environmentalists
complain that geothermal plants are nowhere near as green as their boosters
say, pointing to problems caused by large amounts of wastewater and the release
of hydrogen sulfide gas, which smells like rotten eggs and can cause or
aggravate respiratory ailments like asthma. There are also worries that
drilling bore holes deep into seismically sensitive earth to reach the
scorching fluid that powers turbines can set off or at least accelerate
earthquakes. The town of Hveragerdi near Reykjavik had a series of earthquakes
that some scientists attributed to a nearby geothermal power plant.
“There are so many
unknowns,” said Mr. Gudbrandsson of the Icelandic Environment Association. He
said he was not opposed to geothermal energy for heating but was concerned that
it stops being a “renewable” source of energy if it is exploited too
intensively by power plants. “You have to use it rather slowly so that it can
renew itself. Otherwise it is just like mining.”
On paper, said Gudni
Johannesson, director general of the National Energy Authority, Iceland has so
much geothermal energy that “there is no real limit” to how much power can be
generated, especially with advances in drilling technology. But pushing too far
in exploiting these reserves, he added, would require cracking huge amounts of rock
and vast investment.
This, Mr. Johannesson
said, means that Iceland should avoid any grandiose ambitions of becoming a
geothermal Saudi Arabia and remain mindful of its limits. “If we export
everything we now have,” he said, “we could perhaps supply Paris.”