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Iceland's precipitation combined with extensive highlands, has an enormous energy potential or up to 220 TWh/yr. Of the primary energy consumption in Iceland, in 2008, 20% was generated from hydropower. The total electricity production was in 2008, 12,5 GWh.
Iceland is a pioneer in the use of geothermal energy for space heating. Generating electricity with geothermal energy has increased significantly in recent years. Geothermal power facilities currently generate 25% of the country's total electricity production.
All petroleum derived fuels currently used in Iceland are imported. The National Energy Authority promotes the use of domestic, alternative fuels as well as recommending ways to reduce fuel use. The NEA also collects data on fuel use and regularly publishes fuel use forecasts.
The National Energy Authority grants licenses for prospecting, exploration and production of hydrocarbons. Applications for non-exclusive, prospecting licenses are accepted at any time, whereas applications for exclusive, exploration and production licenses are normally accepted in license rounds.
The National Energy Authority is a government agency under the Ministry of Industry, Energy and Tourism. Its main responsibilities include: to advise the government on energy issues and related topics, promote energy research and administrate development and exploitation of the energy resources.
Icelandic authorities are preparing a surface geochemistry survey of the Dreki Area. A second licensing round has been announced as from 1 August 2011 untill 1 December 2011.
Read moreRecently the National Energy Authority commissioned a report from two scientists of Iceland GeoSurvey (ISOR) as an overview of hydrocarbon related research in the Tjörnes Basin, located in the Gammur area.
Read moreThe National Energy Authority issued a research licence to the company Sjávarorka ehf. regarding a tidal power plant in Hvammsfjörður Fjord of Breiðafjörður Fjord on 15 January 2010. The research permit is valid for 6 years, and expires on 31 December 2016.
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