Iceland's Success in Achieving 100% Renewable Energy Use

I became interested in energy costs and renewable energy last winter when I was shocked to see a bill showing that fuel costs had nearly doubled. From the perspective of consumers, high-cost energy is burdensome, but from the perspective of those considering manufacturing products and selling them overseas, I think Korea should move to quickly invest heavily in renewable energy.

Germany is the country most affected by Russia's war in Ukraine, and there are concerns that its manufacturing industry will collapse due to the incredible rise in energy costs, which have jumped 10 to 15 times.

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Korea’s renewable energy dependence: 6 to 7.5%
Top 10 countries using renewable energy, dependence on renewable energy
iceland geothermal energy
Several exchange-traded funds (ETFs) and stocks related to the renewable energy and geothermal sectors.
Strengthening RE100 product export competitiveness
6% use of renewable energy, Korea without a future
Recommended book: “Dive into Vietnam for a year!”

Source: Vitsit Iceland

1. Korea’s dependence on renewable energy: 6 to 7.5%

Even people who are not interested in energy have probably heard negative news related to solar energy from time to time. No matter how much we focused on new and renewable energy businesses such as solar power, the effect in terms of energy efficiency other than added value creation was not as high as expected. Renewable energy, which was about 5%, only increased to about 7.5% under the last Moon administration. Of course, we achieved a 2.5% increase in just a few years, but it is extremely small compared to the investment.

Causes of solar power failure in Korea

Due to complex reasons such as urgent policy implementation, excessive greed of private companies, and inexperienced management, the reality is that Korea is drastically reducing or eliminating investment in the solar energy industry and increasing investment in nuclear power generation under the administration.

In the case of Jeolla-do, it is said that solar power generation facilities are built entirely on farmland. In particular, in the case of reclaimed land, where farming is still being carried out, there are many cases where the farmland is completely released due to high salinity, and the contractor and the government collude to receive only investment money for solar power construction and are not interested in actual maintenance of solar power facilities.

Cutting down mountains for the large-scale solar power industry to construct and install panels is also a cause of failure, causing landslides, natural destruction, and other problems.

In addition to this, there is a market situation in which only China has a good industrial structure as they mainly look for Chinese products to lower the unit price of panels.

2. Top 10 countries using renewable energy, dependence on renewable energy,

Major renewable energy sources

1. Iceland:

Reliance on renewable energy: almost 100%, main renewable energy sources: geothermal and hydropower.

2. Costa Rica:

Dependence on renewable energy: approximately 98%, major renewable energy sources: hydroelectric power, wind power, geothermal heat, and solar power.

3. Norway:

Reliance on renewable energy: over 97%, main renewable energy source: hydropower.

4. Uruguay:

Dependence on renewable energy: over 60%, main renewable energy sources: wind and solar power.

5. Sweden:

Dependence on renewable energy: over 54%, major renewable energy sources: hydropower, biomass.

6. Denmark:

Dependence on renewable energy: approximately 47% or more, major renewable energy sources: wind and biomass.

7. New Zealand:

Reliance on renewable energy: approximately 40%, major renewable energy sources: hydro, geothermal, wind.

8. Portugal :

Dependence on renewable energy: over 30%, major renewable energy sources: wind, solar, and hydropower.

9. Austria:

Dependence on renewable energy: over 30%, major renewable energy sources: hydropower, wind power, biomass.

10. Germany:

Dependence on renewable energy: approximately 16%, major renewable energy sources: wind, solar, and biomass.

Iceland's secret to success with renewable energy

Iceland is a little-known European country that overcame the 2008 financial crisis and is now becoming a powerhouse in energy, agriculture, and tourism. Some key factors that have contributed to Iceland's success in the renewable energy sector and its impact on the economy include:

Abundant renewable resources: Iceland is located on the Mid-Atlantic Ridge, a tectonic plate boundary with abundant geothermal energy available. The country also has numerous rivers and waterfalls, making it ideal for hydroelectric power generation. Thanks to these natural resources, Iceland is able to produce clean and abundant electricity.

Sustainable Energy Policy: Iceland has a long history of prioritizing sustainability and environmental protection. The government has implemented policies to encourage the use of renewable energy sources and reduce greenhouse gas emissions.

2. Geothermal energy expertise: Iceland has developed expertise in geothermal energy exploration and utilization.

I did. The country has numerous geothermal power plants that produce both electricity and hot water for heating, significantly reducing the use of fossil fuels for heating purposes.

Hydroelectric Infrastructure: Iceland's hydroelectric infrastructure has expanded over the years to take advantage of its abundant water resources. Large and small hydroelectric plants provide a reliable source of power.

Export electricity: Iceland produces more electricity than it consumes domestically, thanks to renewable energy sources. This surplus power is exported to neighboring countries to generate revenue and contribute to the economy.

Energy-intensive industries: Iceland has attracted energy-intensive industries such as aluminum smelting, data centers, and cryptocurrency mining operations thanks to its abundant and cheap renewable energy. These industries have contributed greatly to the national economy.

Tourism and green image: Iceland's commitment to sustainability and use of renewable energy have also contributed to its attractiveness as a tourist destination. The country's green image and eco-friendly practices attract tourists and support the tourism industry.

Innovation and Research: Iceland invests in research and innovation in the renewable energy sector. This has led to advances in geothermal technology and increased efficiency in energy production.

Infrastructure investment: Governments have invested in energy infrastructure to support the growth of renewable energy. This includes transmission line development and grid improvements.

Global leadership: Iceland's commitment to renewable energy and environmental sustainability has made it a global leader in these fields. This leadership role has led to international cooperation and investment in the country's renewable energy projects.

3. Unusual case of geothermal energy use in Iceland

The geothermal pool pairs well with the luxury spa. Geothermally heated water has been increasingly utilized in Icelandic luxury spa settings in recent years. The most famous of these is the Blue Lagoon, located in a lava field on the Reykjanes Peninsula not far from Reykjavik.

And, believe it or not, Reykjavik boasts a geothermal beach with white sand, warm seas, and a little bit of geothermal help.

Source: Vitsit Iceland

Source: Vitsit Iceland

4. Several exchange-traded funds (ETFs) and stocks related to the renewable energy and geothermal sectors.

1. iShares Global Clean Energy ETF (ICLN): This ETF focuses on global companies involved in clean energy, including geothermal. It provides exposure to a variety of renewable energy sectors, including geothermal, wind, and solar.

2. First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN): QCLN tracks the performance of U.S. companies engaged in clean energy activities, which may include geothermal energy.

3. Ormat Technologies, Inc. (ORA): Ormat is a geothermal energy company that designs, develops and operates geothermal and renewable energy plants. It is a prominent player in the geothermal field.

4. Contact Energy Limited (CEN.NZ): This New Zealand-based company engages in geothermal energy production and operates geothermal power plants.

5. Enel SpA (ENEL): Enel, an Italian multinational energy company, is involved in a variety of renewable energy sources, including geothermal, and has a growing global presence.

6. Innergex Renewable Energy Inc. (INE.TO): This Canadian company is involved in renewable energy projects, including geothermal, hydro, wind, and solar power.

7. Alterra Power Corp. (AXY.TO): Alterra Power is a Canadian company with renewable energy assets, including geothermal power plants.

5. Strengthening RE100 product export competitiveness

RE100 is a global initiative that brings together companies and organizations committed to 100% renewable electricity. RE100's goal is to accelerate the transition to renewable energy and combat climate change by stimulating demand for clean energy at scale. The initiative has more than 397 members ranging from household brands to critical infrastructure and heavy industrial suppliers, including 27 Korean companies. With a total revenue of over US$6.6 trillion, our members account for 1.5% of global electricity consumption, which means we have a higher annual electricity demand than the UK. Key features of RE100 include:

Commitment to 100% renewable electricity: Companies and organizations that join RE100 commit to switching their electricity consumption entirely to renewable energy sources. This commitment applies to our global operations, facilities and offices generally.
Public Commitment: RE100 participants publicly announce their commitment to supply 100% renewable electricity. These public commitments can help raise awareness and inspire other companies to follow suit.
Transparency and reporting: RE100 participants are required to transparently report on their progress towards achieving their renewable energy goals. This includes sharing information about the share of renewable electricity in the energy mix and efforts to increase renewable energy capacity.
Collaboration and knowledge sharing: RE100 provides a platform for participating companies and organizations to collaborate, share best practices and learn from each other's experiences in the transition to renewable energy.
Global Reach: RE100 is a global initiative with participants from diverse industries and regions around the world. This diversity reflects international efforts to combat climate change through the adoption of renewable energy.
Support and Resources: RE100 provides resources and guidance to help organizations navigate the challenges of transitioning to renewable energy, including advice on sourcing renewable power, working with suppliers, and overcoming regulatory hurdles.

RE100 is managed by the non-profit organization The Climate Group in partnership with CDP (formerly the Carbon Disclosure Project). Businesses and organizations of all sizes and sectors are encouraged to join RE100 and work towards a cleaner, more sustainable energy future.

6. Renewable energy utilization of 6%, Korea without future

Korea's relatively low rate of renewable energy utilization compared to other countries has raised concerns for several reasons:

Energy Security: South Korea relies heavily on imported fossil fuels to meet its energy needs. Reducing this dependence by increasing the use of renewable energy can enhance energy security.
Environmental Issues: Like many countries, Korea faces environmental issues related to air pollution and greenhouse gas emissions. Switching to renewable energy sources can help reduce carbon emissions and improve air quality.
Climate change mitigation: Korea aims to reduce carbon emissions in line with global climate goals and contribute to international efforts to mitigate climate change. Renewable energy plays an important role in achieving these goals.
Economic Opportunity: Investing in renewable energy can create jobs, stimulate economic growth, and support the development of a sustainable energy industry. It can also secure competitiveness in exports.

However, the current government is drastically reducing investment in renewable energy. If you look at the dependence on renewable energy within Asia, it is 51% in China, 25.3% in Vietnam, 51% solar power in China, 22% in Japan, and 12% in India, while Korea shows an incredible figure of 6%, which is equivalent to 50% of India. There are concerns that the country will become a high-cost, low-efficiency country with plans to reduce this margin.

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