Iceland is a beacon of clean electricity, with a remarkable 99.97% of its electricity sourced from low-carbon technologies. This achievement splits mainly between hydropower, which constitutes more than two-thirds, and geothermal energy, covering nearly a third. Besides this enviable position in sustainable energy, Iceland faces the future challenge of extending this clean energy ethos to other sectors like transportation and industry. As these sectors progressively electrify, the demand for electricity is set to surge, urging a need for even greater low-carbon generation capacity.
Data sources used on this page include IEA and World Bank. More about data sources →
Is Electricity Growing in Iceland?
Despite Iceland's high-standing in low-carbon electricity generation, recent years have seen a decline in per capita electricity consumption from its peak in 2015. The latest figures indicate consumption of 46,882 kWh per person, showing a reduction of over 9,900 kWh compared to a decade ago. Similarly, low-carbon electricity generation per person also decreased by a similar margin. This stagnation in consumption and production could signal a potential bottleneck in meeting future clean energy demands, especially given the ongoing global shift towards electrification in many sectors.
Suggestions
To bolster its low-carbon electricity generation, Iceland could explore expanding its geothermal and hydropower capacity further. Moreover, incorporating other clean technologies like solar and nuclear could provide a more robust energy mix, ensuring a steady and scalable increase in capacity. Expanding these technologies could empower Iceland not only to meet the growing electricity demand but also to contribute significantly to global sustainability efforts. This diversification will fortify the nation’s positioning in clean energy leadership.
History
Tracing the history of low-carbon electricity development in Iceland, steady increases in both hydropower and geothermal output have characterized the late 20th and early 21st centuries. The late 1990s witnessed incremental annual increases in hydropower and geothermal, while notable expansions in the early 2000s saw significant rises in geothermal from 2006 and hydropower surges in 2008 and 2013. The past decade, however, reflected fluctuations with some setbacks in hydropower output, such as the modest declines in 2020 and 2024. Nonetheless, Iceland remains a key figure in advancing clean electricity, and by capitalizing on this momentum, it can continue to lead global examples of sustainable electrical innovation.
