Iceland is a beacon of low-carbon electricity generation, sourcing a remarkable 99.97% of its electricity from clean energy sources. Specifically, hydropower and geothermal energy play leading roles, accounting for more than half and almost a third of the total electricity generation, respectively. From December 2024 through November 2025, Iceland's energy landscape showcases its commitment to sustainable practices, with a minuscule reliance on fossil energy, which stands almost at zero. This incredible low-carbon achievement is something to be celebrated. However, the country's next challenge is to electrify other sectors such as transportation, heating, and industry, all of which will require substantially more electricity output.
Data sources used on this page include IEA and World Bank. More about data sources →
Is Electricity Growing in Iceland?
Currently, Iceland's electricity consumption per person is 46,439 kWh, falling from the previous record consumption in 2015 of 56,809 kWh. This decline also reflects a decrease in low-carbon electricity generation, maintaining the same 10,370 kWh drop from its historic high. While these figures are adjusted to the highest standards of clean energy, the trend of reduced electricity consumption signals a potential shortfall that could jeopardize future electrification goals. The decline of electricity, especially when it's low-carbon, is disheartening and something that Iceland must counteract to meet anticipated higher demands.
Suggestions
To increase low-carbon electricity generation, Iceland should consider exploring nuclear and solar energy, both of which can supplement the existing hydropower and geothermal sources. Nuclear energy, in particular, offers a steady and scalable solution, free from intermittency concerns. Solar energy can also play a vital role, especially with technological advancements that make capturing sunlight more efficient even in less sunny regions. By diversifying its clean energy sources now, Iceland not only boosts its electricity output but also strengthens its resilience against fluctuating demands and climatic constraints.
History
Reflecting on Iceland's history of low-carbon electricity generation, several pivotal periods stand out. In the late 1990s, both hydro and geothermal energy experienced sequential growth spurts, establishing a solid framework for subsequent increases. The early 2000s witnessed significant expansions, particularly in geothermal energy, which surged by 1 TWh in 2006 alone. There were substantial advancements in 2007 and 2008 when hydro and geothermal production surged again, fuelled by new facilities and enhancements. More recent years have witnessed variability with isolated declines, showing that consistent investments and innovations in low-carbon electricity generation are essential for continuous growth. It's crucial that Iceland escalates these efforts to not only maintain its environmentally conscious legacy but also to meet the increasing demands of a modernized, electrified society.
