Port of Call LAST UPDATE July 8, 2009
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June 18, 2009 Reykjavik – The Implications of Energy Development in a Resource Rich Country
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Reykjavik, the capital city of Iceland, is almost completely powered by green energy sources, however there is such an abundance of electricity in Reykjavik that approximately 90% of the electricity produced there is not used.

Remotely located and extremely underdeveloped until halfway through the last century, Iceland is now a thriving democratic nation with some of the highest standards of living and civil liberties in the world. It has also been amongst the worst affected by the recent global economic crisis, witnessing a drastic drop in the value of its national currency. Iceland’s history is littered with volcanic activity, and its very existence is owed to this fact – being a volcanic island.

With over 70% of the nation's energy a product of renewable energy sources, and over 99% of the country's electricity produced from hydro-power and geothermal energy, Iceland is often touted as one of the greenest countries in the world, with a long-term goal to be energy-independent by 2015. However, despite these impressive figures, due to their high dependence on cars Icelanders have amongst the highest carbon dioxide output per capital in the world, a fact that represents an apparent ignorance towards ecological issues.
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The first hydroelectric dam constructed in Iceland, built in 1921, is a working example of a sustainable project despite the environmental impact that it causes due to the manner in which the operation is executed, endeavouring to keep its impact to a minimum and using only what it requires.
In recent years Iceland has been promoting itself as an energy producing nation in an effort to move away from its traditional fishing industries and to stimulate the economy and attract foreign investment. This has already resulted in the mass scale production of aluminium smelting plants across the island nation causing the destruction of the biodiversity of the region as well as environmental degradation, with many more energy plants still to be constructed.

In order to understand different perspectives on the situation and the implications and impact of the energy industry, Peace Boat participants visited a variety of green energy locations. However, to begin the tour participants visited the first constructed hydroelectric plant in Iceland used to power just over half of Reykjavik’s streetlights. They next visited a waterfall that has been authorised for conversion into a hydroelectric plant for the exclusive use of an aluminium company to witness the contrast between the two locations.

Despite the fact both dams will interrupt the local eco-system, the difference in concept between the two is striking. The aluminium smelter plant will consume as much electricity as possible in order to maximise its output and therefore will work as hard as it can in order to produce this electricity, causing maximum impact on the local eco-system.
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In order to see the local environment prior to the disturbance of the energy plants, participants visited a waterfall that is to be converted into a hydroelectric dam within the next two years. The fact that this place of natural beauty will be lost within such a short time period was not lost on participants, who were moved by the beauty of the natural sight.
The municipal plant they visited, on the other hand, is used only as needed and in fact is not used for eight months of the year when there is enough light during the night time that streetlights are not required. The dam is managed responsibly in order to minimise the environmental impact, where things like built up silt, despite the costliness of the exercise, are transported to the lower part of the river to maintain nutrition levels in the river.

The Icelandic people already have all the energy they need, and all further construction of energy plants is for the exclusive use of foreign manufacturing companies that contribute to the destruction of the Icelandic highlands. The projects are a result of government initiatives that invited these foreign companies in order to raise investment funds. The development of these plants has provided temporary employment for the Icelandic people, however the nature of the work is not sustainable. Once these projects are completed, the plants and smelters employ only a minimum number of people, thus returning to the same unemployment situation as before at the expense of the environment and the gain of foreign companies.
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A working example of the potential that geothermal energy has to offer is the ‘Tropical Iceland’ project. Glasshouses were erected and conduits installed to carry steam from the underground geothermal area through them, creating a semi-tropical climate that facilitates the production of tropical fruits such as bananas, strawberries and, flowers.
Despite being green energy resources, the long-term benefits of hydroelectric dams have long been debatable due to the ecological impact that they cause to the river systems. A preferred alternative to hydroelectricity therefore is geothermal energy, a resource that Iceland is veritably rich in. There are 20 distinct areas in Iceland that have been recognised by scientists as prospective or potential geothermal plants. Of these 20 areas, all located within some of Iceland’s most prestigious and beautiful landscape, 16 have authorised by the Icelandic government to be developed by aluminium companies by 2015. At this stage, the aluminium companies will be consuming 97% of the energy produced within Iceland.

Geothermal areas take approximately 200 years for volcanic magma to heat the earth up to a level hot enough for exploitation. Holes are drilled approximately 1 km down at these active geothermal areas where steam is then extracted at high pressure to drive turbines and create energy. However, if the steam is extracted at a higher rate than what it is being heated by the magma from underneath, an over all cooling process will occur, resulting in the loss of potential for energy use.
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The Geothermal Power Plant next to the Blue Lagoon is an example of a responsible and sustainable plant that provides electricity and hot and cold water to the municipalities of the Reykjanes Peninsula as well as containing a research facility and a recreational outdoor Blue Lagoon spa complex.
A paradox felt particularly strongly by the participants throughout the tour was the unrealised potential that Japan has for the same type of green energy, highlighted by the fact that the majority of the machinery employed within the Icelandic energy plants is manufactured in Japan by the Japanese company Fujijuko (Fuji Heavy Industries Incorporated).

Speaking about the irony of the situation, Peace Boat participant Tokie Nami pondered ‘why is it that Iceland is so progressive on a fundamental level, like producing sustainable energy, whereas Japan has the same physical potential to create the same type of energy however conceives ecologically friendly ideas as using reusable chopsticks, which is good but only effects change on a more superficial level, while we are still using nuclear energy.’ Yamada Akira voiced that ‘Japan still has areas of virgin beauty however we are not particularly focused on preserving it. Japan seems to be more focused on scientific development… maybe Japanese people and in particular the youth of Japan should take heed of the example being set by Iceland and start acting to preserve the nature we have left.’ It is now hoped that through community opposition prior to the construction of any future dams that they may be stopped.