Proposed Iceland/UK (Peterhead) 1.2 GW HVDC cable

This Paper presents and discusses the current situation of developments in harnessing hydropower in Iceland for largescale generation of electricity for export by cable to the United Kingdom. It addresses (i) market considerations with cost of electricity from new offshore and inland wind power, gas and coal-fired plant, and nuclear plant, (ii) investments for the development of hydro resources in Iceland, (iii) submarine cables and converter plant, and (iv) overall capacity of the link. It is noted that (a) there should be no major difficulties in the manufacture and laying of submarine cables of length and type necessary for the Link, (b) availability of the connection should be at least equal to that of new coal/gas and nuclear plant, and (c) cost of delivered energy would be very competitive with offshore and onshore wind, and of new coal/gas and nuclear plant. Also reviewed is deep drilling projects in Iceland, the exploration of deep unconventional geothermal resources in NE Iceland that could be harnessed in future that could be developed in future for the link. The economics, availability, and reliability of geothermal plants are reviewed.