Electricity in Iceland in 2023/2024

Iceland stands as an exemplary leader in clean electricity consumption, with almost all of its electricity, 99.99%, deriving from low-carbon sources over the last 12 months, spanning from October 2023 to September 2024. More than two-thirds of this electricity is generated from hydropower, accounting for approximately 70% of the total, while close to one-third, about 30%, comes from geothermal sources. This impressive usage of low-carbon electricity underlines Iceland's commitment to sustainable energy practices. However, the path forward involves a greater challenge of transitioning other sectors such as transport, heating, and industry towards electrification, which will inevitably demand an increase in Iceland’s electricity production capacity to maintain low-carbon integrity.

Suggestions

To enhance low-carbon electricity generation further, Iceland could explore the development of additional hydropower and geothermal plants, given their successful use thus far. Moreover, integrating other low-carbon technologies such as wind and solar energy could provide a more diversified and resilient energy system. Although Iceland does not currently have nuclear energy, given its clean and efficient nature, considerations towards international partnerships for nuclear technology could offer a significant boost in electricity generation capacity. Such expansions would ensure Iceland meets future electricity demands while staying committed to its low-carbon ethos.

History

Historically, Iceland's journey to low-carbon electricity has shown notable growth spurts, particularly since the late 20th century. In the 1970s, hydropower began making incremental gains, rising by 0.5 TWh in 1973. The late 1990s witnessed continued boosts, with hydro increasing by 0.4 TWh yearly in 1997 and 1998, complemented by geothermal adding 0.5 TWh in 1999. A significant leap was observed in the late 2000s, particularly in 2007 when hydro rose by 1.1 TWh and geothermal by 0.9 TWh, followed by an even larger uptick in 2008 with hydro surging by 4 TWh and geothermal by another 0.5 TWh. The upward trajectory continued sporadically, with few setbacks such as a marginal decline of 0.4 TWh in hydro in 2019 and a more recent reduction of 0.8 TWh in 2024. However, overall, Iceland’s dedication to low-carbon electricity has remained unwavering and stands as a role model in sustainable electricity generation.

Electricity Imports and Exports

Balance of Trade

Data Sources