Akureyri - Utilities

Utilities

Akureyri has been heated geothermally since the late 1970s. Starting in 1928, there were unsuccessful attempts to develop geothermal energy. During this period, electricity and oil were used for heating. Construction of a geothermal distribution system was begun in 1976 after the discovery of a commercially viable source in 1975. Distribution was widespread by 1979.

The Laugaland field near Akureyri was the first geothermal source commercially developed. The Ytri-Tjarnir field followed. To obtain sufficient water flow, additional fields were developed at Botn in 1980, Glerárdalur 2 km west of the town in 1981, and Þelamörk 10 km north of the town in 1992. Water temperature is generally 65–75 C but can drop to 45 C during hot summer days. The cost of geothermal production is, at 32 mill/kwh, higher than the Icelandic national average of 11, but slightly less than the cost of imported heating oil. There is diminishing excess capacity but there are known and untapped resources near the town. Furthermore, there have been proposals to reinject water to extend the life of the sources.