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The glaciers and rivers of the interior of the country are harnessed to generate 80% of the country's electricity needs through hydropower, while the geothermal fields provide up to 20% of the country's electricity needs. These underground fields, which give tourists and locals their bathing pools, also provide Icelanders with an almost limitless and inexpensive supply of natural hot water.
There is no national grid in Iceland – harnessing the energy comes via the remarkably simple method of sticking a drill in the ground near one of the country's 600 hot spring areas, and using the steam that is released to turn the turbines and pump up water that is then piped to nearby settlements.
Geothermal water is used to heat around 90% of Iceland's homes, and keeps pavements and car parks snow-free in the winter. Hot water from the springs is cooled and pumped from boreholes that vary between 200 and 2,000m straight into the taps of nearby homes, negating the need for hot water heating. It's also purified and cooled to provide cold drinking water.