Renewable energy in Iceland

About 85% of total primary energy supply in Iceland is derived from domestically produced renewable energy sources. This is the world’s highest share of renewable energy in any national total energy budget.

In 2016, geothermal energy provided about 65% of primary energy, the share of hydropower was 20%, and the share of fossil fuels (mainly oil products for the transport sector) was 15%. In 2013, Iceland also became a producer of wind energy. The main use of geothermal energy is for space heating, with the heat being distributed to buildings through extensive district-heating systems. About 85% of all houses in Iceland are heated with geothermal energy.

In 2015, the total electricity consumption in Iceland was 18,798 GWh. Renewable energy provided almost 100% of electricity production, with about 73% coming from hydropower and 27% from geothermal power. Most of the hydropower plants are owned by Landsvirkjun (the National Power Company) which is the main supplier of electricity in Iceland. Iceland is the world’s largest green energy producer per capita and largest electricity producer per capita, with approximately 55,000 kWh per person per year. In comparison, the EU average is less than 6,000 kWh.

Iceland's unique geology allows it to produce renewable energy relatively cheaply, from a variety of sources. Iceland is located on the Mid-Atlantic Ridge, which makes it one of the most tectonically active places in the world. There are over 200 volcanoes located in Iceland and over 600 hot springs. There are over 20 high-temperature steam fields that are at least 150 °C [300 °F]; many of them reach temperatures of 250 °C. This is what allows Iceland to harness geothermal energy, and these steam fields are used for everything from heating houses to heating swimming pools. Hydropower is harnessed through glacial rivers and waterfalls, which are both plentiful in Iceland.

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