Iceland is considering building the world's longest subsea power cable by around 2020 to take advantage of its abundant geothermal energy to supply Britain with green power, the head of the state-run electricity producer said.
"We can serve as a green battery for the UK," Hordur Arnarson, the chief executive of Landsvirkjun said in an interview.
"We believe it's a win-win situation, because we have a flexible (source of) renewable power, which could be used to balance (supply and demand in Britain)," Arnarson said in an interview. "It will be the longest subsea cable in the world."
The project, previously considered economically unviable, is back in the frame because of rising demand for low-carbon energy and regulations favouring renewable power.
A government-appointed committee will deliver a report on the project this year, and Landsvirkjun expects to make a final investment decision on the 1,000 kilometre subsea cable by 2015-2016, Arnarson said.
Tiny Iceland, with a population of just 320,000, has plenty of geothermal power thanks to its volcanic formations. McKinsey & Co estimates it is harnessing only 20 to 25 percent of its hydro and geothermal energy potential.
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