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(that was the whole point of closing two US smelters and setting up here). What can't be
denied is that the mega-dam that was built specifically to power the Alcoa plant has dev-
astated the landscape. Environmentalists raised serious objections to the project, on a num-
ber of grounds, but the locals were less vocal - many were grateful for the work opportun-
ities coming to the area. Bear in mind that east Iceland has a population of only 12,500 -
then imagine how hard it might be to fight government decisions and multinational corpor-
ations.
Dreamland: A Self-Help Manual for a Frightened Nation , by Andri Snær Magnason, critic-
ally examines the government's decisions over Kárahnjúkar. The powerful documentary
based on the topic, Dreamland (2009), won critical acclaim.
The Power of Power
The Kárahnjúkar dam and aluminium smelter are a dramatic illustration of the dilemma
Iceland faces.
To ensure economic prosperity, Iceland is seeking to shore up its position as a green-en-
ergy superpower. Thanks to its endless geothermal and hydroelectric energy sources (and
now new wind turbines), Iceland generates more electricity per capita than any other coun-
try in the world (double as much as second-place Norway) - 80% of that electricity is sold
to a handful of international companies in Iceland (such as aluminium smelters), but ex-
porting electricity would bring in new revenue.
Iceland and the UK are exploring the feasibility of exporting clean hydroelectric energy
via a 1000km subsea power cable running from Iceland to the UK (a project known as
IceLink in the UK - read more at askjaenergy.org). Iceland is also hoping to expand its
power-intensive industries - including a vision to become a global datacentre hub, home to
the servers housing all our digitised information.
But if such initiatives go ahead, the power must still be harnessed, and power plants and
power lines must be built for such a purpose. Where will these be located? What other
tracts of Iceland's highland wilderness may be threatened by industrial megaprojects?
Landvernd, the Icelandic Environment Association (an environmental NGO;
www.landvernd.is ), has proposed that the central highlands be protected with the establish-
ment of a national park. Economic profit versus the preservation of nature - it's an age-old
battle. Watch this space.
 
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