Iceland stands as a leading example in clean electricity generation, achieving a remarkable milestone with virtually all its electricity—over 99.98%—coming from low-carbon sources. This impressive feat is primarily due to its significant reliance on hydropower and geothermal resources, which contribute roughly 71% and 29%, respectively, to the electricity mix. Iceland's commitment to low-carbon energy is critical as the nation explores further electrification of sectors like transportation, heating, and industry, which remain heavily reliant on fossil fuels. This shift will undoubtedly demand a considerable boost in electricity supply, underscoring the importance of maintaining and expanding sustainable electricity production.
Is Electricity Growing in Iceland?
Despite Iceland's laudable position in terms of clean electricity, recent data indicates a troubling decrease in overall electricity consumption compared to previous records. In 2024, the per capita electricity consumption stood at approximately 48,461 kWh, reflecting a decrease from the last high in 2015, which was around 56,807 kWh per person. Similarly, low-carbon electricity generation also showed a decline, with recent figures hovering around 48,453 kWh per person compared to the 2015 peak of 56,795 kWh per person. This reduction, both in total consumption and particularly in low-carbon generation, raises concerns about the pace of growth required to meet future demands and combat climate change effectively.
Suggestions
To counter these challenges and enhance low-carbon electricity generation, Iceland can strategically invest in expanding its existing clean energy infrastructure, focusing on innovative solutions like advanced geothermal technologies and bolstering its hydropower capacity. Moreover, exclusively considering an increase in solar and nuclear energy to diversify the electricity mix might offer stability and resilience against the intermittency challenges associated with hydropower and geothermal. Given the global urgency to combat climate change and ensure sustainable development, Iceland's proactive steps towards increasing its clean energy supply will set a crucial precedent.
History
Iceland's history of low-carbon electricity generation reveals a trend of consistent growth punctuated by remarkable achievements in both hydropower and geothermal expansion. In the late 1990s, modest increases began with significant contributions from hydro, enhancing the nation's clean energy capability. The years spanning 2006 to 2009 marked a period of robust geothermal expansion, complementing hydro's role, notably in 2007 and 2008 with substantial increases in both sectors. Subsequent years saw steady growth, though 2024 reflected declines in both hydro and geothermal outputs, underscoring the need for renewed investment in low-carbon infrastructure. This continuous commitment to expanding clean energy sources emphasizes Iceland’s forward-thinking approach, even as it encounters challenges that demand innovative solutions.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.