Hydropower generated the largest share of Iceland’s electricity in 2022.
Iceland has abundant renewable resources because its landscape combines glacial rivers, steep terrain, and volcanic geology. Hydroelectric stations harness meltwater and river flows, while geothermal plants use underground heat. Together, these resources allow Iceland to generate nearly all of its electricity from renewable sources.
Hydropower has historically supplied the larger portion of the country’s electricity, with geothermal energy providing the other major share. Iceland’s renewable electricity system is sometimes described as entirely geothermal, but that is incorrect: geothermal energy is extremely important, especially for heating, while hydropower remains the leading electricity source. The exact annual percentages can change with reservoir levels and demand.