GEOTHERMAL TO ICELAND’S RESCUE

A Win-Win Plan for Iceland, Britainand The Netherlands
Hazel Henderson, March 10, 2010 (IPS via Ethical Markets)

"…[Icelanders, on March 6, 2010, rejected by 90% a referendum on paying off $5.3 billion (45% of 2009 national output) of odious debt incurred by their privatized bank Icesave]…[I]t seems likely that Iceland’s President Olafur Ragnar Grimsson and Prime Minister Johanna Sigurdardottir, both of whom are familiar with the Energy for Debt plan [that it would repay investors in assured supplies of electricity rather than in volatile or inflating currencies], might be ready to endorse it. This would set the stage for companies such as ABB, Siemens and other big players to adopt the feasibility studies already performed…[and] develop Iceland’s boundless geothermal energy and send its electricity to Britain and the Netherlands via a high-voltage DC transmission line…

"…Iceland, situated between two of Earth’s tectonic plates, has unlimited geothermal energy from the planet’s core near the surface –rather than miles deeper as elsewhere…Few technical barriers exist to developing Iceland’s geothermal resources, and many similar high-voltage transmission lines are already operating in Europe, China, Brazil, Japan, and many more are under construction. The main suppliers are ABB and Siemens, and more are due to come on line this year and in 2011 through 2013. The newer lines carry renewable energy: wind in Europe, new lines for solar in the USA…[and] super-grids are planned…[to carry solar electricity from North African countries] under the Mediterranean…across the North Sea for distributing wind-powered electricity."

From schreinervideo via YouTube

"The most innovative factor in the Energy for Debt plan is that it would repay investors in assured supplies of electricity rather than in volatile or inflating currencies. This new KWH (kilowatt hour) currency will be sounder than any government issued fiat currency. Indeed, we now witness central banks bailing out their bloated, corrupt financial sectors, with zero interest funds, purchasing toxic assets and, lately, by “quantitative easing” –a polite term for printing money.

"Icelanders rejected the unfairness of bailing out private banks and foolish British and Dutch savers tempted by unrealistically high interest rates. The punitive repayment deal would have forced Iceland’s 350,000 citizens to each pay $135 per month for the next 8 years. The collapse brought on by Iceland’s foolish private banks has caused a deep recession and 9% unemployment. With the Energy for Debt plan, Iceland could not only restore its economy, but repay the British and Dutch in full, possibly over a shorter timeframe and in the new inflation-proof electricity “currency” that would be better and more useful than gold…"

Iceland isn’t the only country rich with geothermal resources. (click to enlarge)

"Thus, EU governments can provide the guarantees that would enable pension funds to invest, since such long-term investments are ideal for their beneficiaries. Pension funds of the Institutional Investors Group on Climate Change, representing some $17 trillion of assets, has committed to increasing their “green” investments and supports a strong post-Kyoto climate agreement. The Climate Bonds Initiative has designed many kinds of bonds for renewable energy and water projects.

"Major financial media are also aware of the Energy for Debt plan but are waiting for the various players to coalesce and get the go-ahead from Iceland’s leaders. This plan may well trigger a new “energy rush” …There are very few “plays” left within the old money circuits…[S]overeign bonds of many countries are now attacked by speculators who also account for most of the $3 trillion of currencies traded every day. Over-leveraged hedge funds, dark pools, flash trading, naked short-selling, credit default swaps and derivatives are still un-regulated and leave most investors appalled. Many investors are bypassing Wall Street and other “too big” banks and financial firms – moving their money to local banks, non-profit credit unions and money-free electronic trading platforms…The right engineering companies, pension funds and other green institutional investors such as the UN Principles of Responsible Investing’s member funds totaling $19 trillion can take lead positions in the Energy for Debt investment…[It] can provide a creative model and a beacon for the UN’s Global Green New Deal. Iceland and Europe can now look forward to a clean, homegrown energy future."