Unlike the other countries in the Nordic region, Iceland’s electricity grid is isolated. Most small island economies rely on oil-fired power plants to provide steady electricity supply, but Iceland has virtually 100% renewable electricity from its abundant hydropower and geothermal resources.
Significant geothermal, hydropower and wind resources are left unutilised due to the low demand of the country’s 320 000 inhabitants, and their inability to export the electricity directly. Instead, the energy is exported through power-intensive industries such as aluminium production. Consuming almost two thirds of all electricity, these industries are the main reason why Iceland has one of the highest energy consumptions per capita in the world.
Data source: IEA