Renewable energy production in Iceland

Iceland seeks to become self-sufficient in energy production and independent from a foreign trade of oil and coal. Before the concept of sustainable development has been introduced, the hydro/geothermal production was already sustainable (both environmentally and economically) and later become the buzzword in Iceland.

Iceland's electrification began in the early 20th century when people started harnessing smaller farm lakes and waterfalls for electricity production. At the end of the 1970s geothermal energy was increasingly used for electricity production; previously geothermal water was mainly (and still is) used for central house heating.

Most of the Icelandic electricity originates from hydropower, but the utilization of geothermal energy for electricity production has been increasing in recent years and decades. Now it stands at 70& hydropower and 30% geothermal when it comes to electricity production.

The project is well established and goes in a collaboration between Icelandic state, different municipalities, the general public, industries, private investors, and different innovation actors. Nowadays, electricity used in Iceland is almost all produced from renewable energy sources - 99,99%.


Keywords: sustainability, sustainable development, hydropower, geothermal energy, aluminum, Iceland