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"Because of the special geological situation in Iceland, the high concentration of volcanoes and geothermal energy are very often used for heating and production of electricity. The energy is so inexpensive that in the wintertime, some pavements in Reykjavík and Akureyri are heated.

"In Iceland, there are five major geothermal power plants which produce about 26% (2006) of the country's electricity. In addition, geothermal heating meets the heating and hot water requirements for around 87% of the nation's buildings.

"Nesjavellir is the largest geothermal power plant in Iceland. It is located 177 metres above sea level in the south-western part of the country, near Þingvellir and the Hengill volcano.

"Plans for utilizing the Nesjavellir area for geothermal power and water heating began in 1947 -- some boreholes were drilled to evaluate the area's potential for power generation. Research continued from 1965 to 1986. In 1987, the construction of the plant began, and the cornerstone was laid in May 1990. The station produces approximately 120 megawatts (MW) of electrical power, and delivers around 1800 litres of hot water per second, servicing the Greater Reykjavík Area's hot water needs."