Electricity in Iceland in 2023/2024

Iceland has achieved an incredible milestone by generating 99.99% of its electricity from low-carbon sources over the past year, covering the period from July 2023 to June 2024. This predominantly comes from hydropower, which contributes over 70% of the electricity, and geothermal energy, which provides almost 30%. The minimal reliance on fossil fuels is noteworthy, with close to none of its electricity generated from these polluting sources. This achievement sets a high standard for clean energy, but the next challenge for Iceland is to electrify other sectors such as transportation, heating, and industry, which will require a significant increase in its clean electricity generation.

Suggestions

To accommodate the anticipated rise in electricity demand, Iceland can enhance its low-carbon electricity generation by tapping further into its abundant hydro and geothermal resources. Additionally, integrating wind and solar power can diversify the energy mix and provide more flexibility. Although the nation does not currently utilize nuclear energy, exploring this option could offer a stable and substantial boost to its clean energy capacity. Strategic investments in these areas along with modernizing the grid and implementing energy storage solutions will ensure a resilient and sustainable electricity supply.

History

Historical data shows that Iceland's commitment to low-carbon electricity generation began to pick up pace in the late 20th century. By the mid-1970s, hydroelectric projects had incrementally added around 0.5 TWh. Significant increases occurred in the late 1990s, with both hydro and geothermal projects contributing steadily. The early 2000s saw marked growth, particularly in 2007 and 2008, where hydro and geothermal saw combined leaps of up to 5 TWh. Subsequent years, particularly 2009 and beyond, have sustained this upward trend with modest annual increases, except for a marginal decline of 0.7 TWh in hydro energy in the 2023/2024 period. This historical progression underscores Iceland’s unwavering dedication to expanding its green energy capabilities, setting a remarkable precedent for clean electricity generation.

Electricity Imports and Exports

Balance of Trade

Data Sources