Electricity in Iceland in 2023

In 2023, the Icelandic electricity supply was almost entirely dependent on low-carbon sources, amassing up to 99.98% of its power production. Hydropower took the lion's share, providing just over 70% of the electricity mix, while geothermal energy supplied almost 30%. This substantial reliance on clean energy makes Iceland a noteworthy contributor in efforts to reduce global CO2 emissions, especially as it also exports significant amounts of electricity to neighboring countries. Despite these achievements, however, other sectors such as transport, heating, and industry still need to be electrified, which will significantly increase the demand for electricity.

Suggestions

Iceland has immense potential to expand its low-carbon electricity generation to meet the increasing demand. Current geothermal and hydropower capacities can be further exploited, and investing in research and development could yield innovative ways to augment these resources more sustainably. In addition, Iceland could explore harnessing other low-carbon sources such as nuclear, wind, and solar power. Adopting a diversified portfolio of clean energy sources would guarantee electricity supply security while also fostering energy resilience.

History

Low-carbon electricity in Iceland has enjoyed a steady growth since the early 1970s. Significant pivotal points in its history include a modest 0.5 TWh increase from hydropower in 1973, kickstarting the country's transition towards cleaner energy. In the late 1990s and early 21st century, both hydropower and geothermal power saw consistent increases in generation capacity. The year 2008, in particular, was a landmark year, with a substantial 4 TWh increase in hydropower and an added 0.5 TWh from geothermal sources. Nevertheless, a slight 0.4 TWh dip in hydropower generation occurred in 2019, a reminder of the need for continuous innovation and diversification to maintain and increase low-carbon electricity production.

Electricity Imports and Exports

Balance of Trade

Data Sources