Economical Expansion of Water Power in an Energy Deficient World

Energy, the lifeblood of modern society is not readily available as it used to be. Thisstatement so often uttered in recent years and seemingly so obvious in today’s energycrises is not in itself the topic I intend to discuss here today. However, the energy crises,the impending decline of fossil fuel supplies the uncertainty of nuclear power’s future, allthis has raided interest in renewable energy resources such as water power and geothermalenergy. Several other renewable energy resources are, of course, being considered todayas a partial substitute for the at present dwindling resources of oil and natural gas. One canmention solar, wind, wave and biomass energy which could to some extent replace theprecious oil and natural gas now providing about 60% of mankind’s energy. None ofthem, however, is expected to take up the role of oil and natural gas today. Nuclear fissionmay bridge this gap to some extent, although this as we all know, is today a highlycontroversial point.Water power and geothermal energy are generally expected to play a minor part on aglobal scale in the future world energy supply. These resources occupy, however, a ratherunique position for several countries. One of them is Iceland. They both constitute thecountry’s only known energy resources at present. They also serve as the source of thecountry’s almost entire electric power production and a large part of the space heatingneeded today. Furthermore, a relatively small part of the resources have so far beenharnessed. Vast amounts of energy are available for development in Iceland perhaps notwhen measured on an absolute scale but certainly in proportion to the country’spopulation and area, a point we will discuss further.One of he resources, water power, (also called hydroelectric power) is my topic heretoday. I will first outline the importance and prospects of water power on a global scale,then compare Iceland’s water power resources with those of other countries. I will discussfuture possibilities for expanding the utilization and demand for the resource in Icelandand how it can be harnessed for maximum social benefit. I will then describe the present stage of research, the cost structure of the resource in Iceland, and the economic implications and criteria of expansion policies.