Iceland's Energy System
The Icelandic energy system is unique in both its isolation from other electricity grids, its small size and high share of renewable energy. In spite of having one of the highest energy consumptions per capita in the world, Iceland hasn’t even started exploiting their large resources of wind energy.
Heat: The Blue Lagoon is one of Iceland's famous hot springs
Roughly 81% of Iceland's primary energy, and 100% of the electricity is renewable. Being a volcanic island, geothermal heat is their main energy source. It accounts for about 90% of space heating, thanks to the country’s extensive district heating system. Geothermal energy also makes up 30% of electricity production. Except for a few backup diesel generators in remote areas, all other stationary energy production comes from hydro power plants.
Primary energy consumption in Iceland, 1940–2007
Iceland has great conditions for wind energy, but this has not yet been utilised. Transportation is still mainly powered by fossil fuels, but the country is working to change this. The abundance of renewable energy has led to the establishment of several power-intensive industries in Iceland, mainly 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.
Share of total primary energy supply, 2008. SOURCE: OECD/IEA 2010
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