Iceland’s achievement is remarkable: almost 100% of its electricity—99.97%—came from low-carbon sources during the twelve months from June 2025 to May 2026. Hydropower supplied roughly three-quarters of electricity, while geothermal supplied just over a quarter, leaving virtually no fossil electricity. The next challenge is to extend this clean-electricity success to transport, heating and industry through further electrification, which will require much more electricity.

Is Electricity Growing in Iceland?

The latest figures do not show growth relative to Iceland’s historical peak, although they alone cannot establish the year-on-year trend. In 2026, electricity consumption was about 46,400 kWh per person, compared with the 2015 record of about 56,800 kWh—roughly 10,500 kWh, or 18%, lower. Low-carbon electricity generation followed almost exactly the same pattern: about 46,300 kWh per person, down from the 2015 record of about 56,800 kWh, also a decline of roughly 10,500 kWh. This shortfall is concerning when electrification and new demand, including AI infrastructure, call for expanding clean electricity supplies.

Suggestions

Iceland can increase low-carbon electricity generation by expanding geothermal capacity and upgrading existing hydropower plants, while strengthening its electricity grid to support additional generation and demand. Solar electricity could diversify supply and contribute particularly during the long daylight hours of summer. Iceland should also consider nuclear electricity as a potential source of dependable, low-carbon generation alongside its established clean sources. Planning new capacity around transport, industrial electrification and growing digital infrastructure would help turn an exceptionally clean electricity mix into a larger clean-electricity supply.

History

Iceland’s low-carbon electricity history shows several distinct waves of expansion. Hydropower increased by 0.5 TWh in 1973, then added a combined 1.2 TWh across 1997–1999, while geothermal added 0.5 TWh in 1999. The strongest expansion came in 2006–2009: geothermal gains totaled 2.9 TWh, and hydropower added 5.1 TWh, including a particularly large 4 TWh increase in 2008. Further gains followed during 2012–2018, with hydropower additions totaling 2 TWh and geothermal additions totaling 1.3 TWh in the listed years. More recently, hydropower fell by 0.5 TWh in 2020 before recovering by 0.8 TWh in 2021, but declines of 0.6 TWh in hydropower in 2024 and 0.5 TWh in geothermal in 2025 are disappointing setbacks that underline the need for renewed clean-electricity growth.

Electricity Imports and Exports

Balance of Trade

* 12M = Last 12 months (Jun 2025 – May 2026) — a rolling 12-month period, not a calendar year.