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Fuels and Energy Transition

World energy consumption in transport, house heating and industry or for electricity generation is mainly based on fuel.  This reality is different in Iceland where the share of renewable energy is among the highest in the world.

Fuels are mainly used for transportation by land, sea and air in Iceland. Parliamentary resolution on an action plan on energy transition aims to ensure that Iceland continues to be in the forefront in the use of renewable energy. All conditions are in favour for Iceland to set a leading example regarding energy transition and the country has already extensive positive experience in such transformations as the switching from oil to geothermal heating is an example of a highly successful national energy transition with large positive economical and environmental benefits. It is imperative for Iceland to use this experience and other available resources in order to reduce the emissions of greenhouse gases and to fulfil the national commitments to the Paris Agreement on Climate Change .

Orkustofnun puts emphasis on maintaining the role of bellwether in the energy transition of Iceland. Recent examples of actions in that context are the revised transportation policy for Orkustofnun, an agreement with a car sharing company, and the acquisition of an e-bicycle for the staff.

Legal and Regulatory Framework on Fuels and Energy Transition

According to Act on the National Energy Authority one of the main roles of the Authority is to gather data on energy resources and other mineral and water resources, their utilisation and the energy utilisation of Iceland, to preserve the data and to disseminate the information to the authorities and the public.

Fuel Use

One of the tasks of the Icleandic National Energy Authority, is to collect data on fuel use. The usage is divided into five main categories: vehicles, aeroplanes, fishing vessels, transportation vessels and industry.

The numbers include domestic usage as well as that for international transport.

Fuel Use Forecast

The forecast estimates fuel consumption in Iceland for the period 2008-2050. The consumption is divided into domestic useage as well as that for international transport, and estimated both for several consumption goups and various fuel types. All fossil fuels are imported and oil has by far the largest share of fuel imports.