Economic Development of District Heating with Public Support

Abstract

Iceland has developed geothermal energy for direct use over many decades. The development was driven by financial support from public authorities and resulted in geothermal heating in over 85% of houses in the year 2000. This had resulted in very economical heating in areas with geothermal resources and in public support for other types of heating in areas without geothermal resources. The government has in recent years set up a program to further expand geothermal heating based on a support scheme from the government which has resulted in over 90% market share of geothermal energy in 2018. Also, better utilization of electricity for heating has been of interest and received public support. All support schemes applied to district heating in Iceland and its economy are discussed and also influence on energy consumption.