Electricity in Iceland in 2024

Iceland has achieved an impressive milestone by generating almost all of its electricity from low-carbon sources, with over 99.98% of its electricity coming from such clean and sustainable sources. Hydropower is the primary contributor, providing more than two-thirds of the country’s electricity, specifically around 70.68%. Geothermal energy also plays a crucial role, supplying almost a third of the electricity at approximately 29.24%. This remarkable achievement underlines Iceland’s commitment to clean energy production. However, as Iceland looks to the future, the next challenge lies in electrifying other sectors such as transport, heating, and industry, which will necessitate a substantial increase in electricity generation.

Suggestions

To meet the growing electricity demands while maintaining low-carbon credentials, Iceland could focus on expanding its existing low-carbon infrastructure. Enhancing geothermal and hydropower capacity could further bolster electricity generation. Additionally, although Iceland currently does not utilize nuclear power, considering the development of advanced small modular nuclear reactors could provide a reliable and abundant power source. Furthermore, investment in wind and solar technologies could diversify the energy mix, despite their intermittent nature, complementing the more stable output of existing hydropower and geothermal plants.

History

Over the decades, Iceland has incrementally increased its low-carbon electricity capacity through strategic developments. During the latter part of the 20th century and into the 21st, hydropower saw consistent expansions, with significant growth in 1973 and throughout the late 1990s, highlighted by increases in the mid-to-late 2000s. Geothermal also saw a series of growth spurts beginning in 1999, with notable expansions in the first decade of the 21st century, particularly between 2006 and 2009. However, it is noteworthy that in 2024, there was a reduction in both hydropower and geothermal electricity generation, which signals a need for renewed focus on expanding the low-carbon capacity. Throughout its history, Iceland has demonstrated a commitment to growth in sustainable energy, setting an example of focusing on clean electricity sources to mitigate the adverse impacts of fossil fuels such as climate change and air pollution.

Electricity Imports and Exports

Balance of Trade

Data Sources