Geothermal Energy Fueling the Energy Transition of the Transport Sector

Abstract

Less than 20% of the primary energy consumption in Iceland is sourced by fossil fuels, as demand for heat and electricity is met by utilizing renewable resources, predominantly hydro and geothermal (OS, 2019a). However, fossil fuels are still the primary source of energy in the transport sector (OS, 2019b). One of the key aspects of Iceland’s recently published Climate Action Plan is the decarbonization of the transport sector. Environmentally friendly mobility has been a large focus at ON Power and Veitur Utilities, subsidiaries of Reykjavík Energy (OR), the largest geothermal energy producer in Iceland. A network of fast charging points for EVs and PHEVs throughout the country has been rolled out by ON Power, and mid-charging points have been installed at the company’s headquarters, its power plants and other offices. Changes in the distribution network and customer services further support the ongoing rapid uptake of electric vehicles and buses in Iceland. Additionally, an electrolyzer producing hydrogen has been installed near the Hellisheidi power plant, where hydrogen is being produced during low-load hours. The initial market for hydrogen cars and buses has been arranged as a part of the EU funded project; Hydrogen Mobility Europe (H2ME). In the near term, controlling the peak load on the electrical grid for a national e-mobility fleet remains an ambitious task. The ownership of EVs and PHEVs cars has increased exponentially in recent years with only Norway exceeding Iceland on a per-capita scale (Phillips, 2019). Moving the battery charging time to off-peak hours is beneficial for all relevant entities; the transmission system, distribution system and production. As households in Iceland’s capital have generally been reducing their consumption of electricity in recent years, a typical household might double its electricity use with the addition of an EV, whilst visits to petrol stations will no longer be needed.