Electricity in Iceland in 2023

Iceland has made remarkable strides in embracing low-carbon electricity, with a near total, 99.98%, of its electricity coming from these clean sources. Hydropower dominates the energy landscape, contributing to over two-thirds at approximately 71% of the total electricity produced. Geothermal energy follows suit, accounting for nearly 29%, making Iceland's electricity generation substantially green. Despite this significant achievement, there is the task of electrifying other sectors such as transport, heating, and industry, posing a need for a further increase in electricity generation.

Suggestions

Increasing low-carbon electricity generation in Iceland can be achieved by maximizing its inherent geothermal potential, in addition to exploring other forms of clean energy such as wind and solar. With its unique geographical position, Iceland can position itself as a green power hub by investing in technologies to harness its extensive wind energy potential. Simultaneously, there can be a strategic shift towards solar energy, though less significant due to Iceland's seasonal variations, it can still serve as a supplementary power source during favorable times of the year.

History

The history of low-carbon electricity in Iceland displays a consistent rise in generation, with occasional blips, from the 1970s right through to the present. The upward trend began in earnest in 1973 with an increase in hydroelectric power generation by 0.5 TWh. The momentum continued sporadically but surely, across both hydro and geothermal energy sources till the early 21st century. The year 2007 saw the most significant rise with a combined increase of 2TWh from both sources. However, the following year, 2008, witnessed the most substantial spike in generation, especially from hydropower, that leaped by a significant 4 TWh. Despite minor retreats, such as seen in 2019 with a 0.4TWh dip in hydropower, Iceland's low-carbon energy generation continued to grow, solidifying its place as one of the leading producers of clean electricity.

Electricity Imports and Exports

Balance of Trade

Data Sources