Iceland already gets 99.97% of its electricity from low-carbon sources—an outstanding clean-electricity achievement. Over the 12 months from October 2025 through September 2026, hydropower supplied about 73% of electricity and geothermal supplied about 27%, leaving fossil electricity close to zero. The next challenge is to extend this success by electrifying transport, heating where fossil fuels remain in use, and industry. This will require much more clean electricity, helping reduce fossil-fuel emissions and air pollution.

Is Electricity Growing in Iceland?

The latest figures do not show electricity consumption per person reaching new heights. In 2026, consumption was about 46,100 kWh per person, compared with the 2015 record of about 56,800 kWh—a shortfall of roughly 10,700 kWh, or 19%. Low-carbon electricity generation followed almost exactly the same pattern, reaching about 46,100 kWh per person versus its 2015 record of about 56,800 kWh. This gap is concerning given the need for more clean electricity to support electrification and future demand, including AI. However, per-person figures alone do not establish whether total national electricity consumption is growing.

Suggestions

Iceland can increase low-carbon electricity generation by expanding its established geothermal and hydropower resources, upgrading existing plants, and strengthening its electricity grid. Solar could add another clean source, particularly through rooftop installations and projects that complement the existing electricity system. Iceland should also consider whether nuclear electricity could contribute to its longer-term supply. A broader clean-electricity strategy, supported by investment and clear planning, would help provide the additional electricity needed for transport, industry and emerging demand.

History

Iceland’s low-carbon electricity history includes several strong periods of expansion. Hydropower generation increased by 0.5 TWh in 1973, followed by three successive gains of 0.4 TWh in 1997–1999; geothermal also added 0.5 TWh in 1999. The biggest expansion came in 2006–2009, when the listed increases totalled about 8 TWh across the two sources, including an exceptional 4 TWh hydropower increase in 2008. Further gains followed in 2012–2018, with hydropower adding about 2 TWh and geothermal about 1.3 TWh across the listed years. More recently, hydropower fell by 0.5 TWh in 2020 before rebounding by 0.8 TWh in 2021, then declined by 0.6 TWh in 2024; geothermal fell by 0.5 TWh in 2025. These recent setbacks underline the importance of restoring sustained growth in clean electricity generation.

Electricity Imports and Exports

Balance of Trade

* 12M = Last 12 months (Oct 2025 – Sep 2026) — a rolling 12-month period, not a calendar year.