Energy
About 85% of the total primary energy supply in Iceland is derived from domestically produced renewable energy sources. This is the highest share of renewable energy in any national total energy budget.
In 2016, geothermal energy provided about 65% of primary energy, the share of hydropower was 20%, and the share of fossil fuels (mainly oil products for the transport sector) was 15%. In 2013, Iceland also became a producer of wind energy. The main use of geothermal energy is for space heating, with the heat being distributed to buildings through extensive district-heating systems. About 85% of all houses in Iceland are heated with geothermal energy.
In 2015, the total electricity consumption in Iceland was 18,798 GWh. Renewable energy provided almost 100% of electricity production, with about 73% coming from hydropower and 27% from geothermal power. Most of the hydropower plants are owned by Landsvirkjun (the National Power Company), which is the main supplier of electricity in Iceland. Iceland is the world's largest green energy producer per capita and largest electricity producer per capita, with approximately 55,000 kWh per person per year. In comparison, the EU average is less than 6,000 kWh.
Master Plan
A master plan comparing the economic feasibility and the environmental impact of the proposed power development projects is being prepared. It is hoped that this comparison will aid in the selection of the most feasible projects to develop, considering both the economic and environmental impact of such decisions.
Power Intensive Industries
As a result of rapid expansion in Iceland's energy-intensive industry, the demand for electricity has increased considerably during the last decade.
Electricity
A licence issued by the National Energy Authority is required to construct and operate an electric power plant. The National Energy Authority is responsible for monitoring as well as regulating the compliance of companies operating under issued licences.
The State and Challanges of Energy Affairs with reference to the government's climate action targets and emphasesA Sustainable Energy Future - An Energy Policy to the Year 2050Legislation on Energy
Act on Landsvirkjun, No 42/1983Act on the guarantee of origin of electricity produced from renewable energy sources, etc. No 30/2008, with amendments.Electricity Act, No 65/2003.Act amending the Electricity Act, No 65/2003Reglulation on disclosure of information regarding Guarantees of origin.Law on the Establishment of Landsnet hf., No 75/2004Act No 13/ 2001 on prospecting, exploration and production of hydrocarbons as amended by Act no. 49/2007 (unofficial translation)Regulation No. 38/2009Regulation on the Hydrocarbon Research FundRules on prospecting, exploation and production of Hydrocarbons 2009Act amending various acts of law relating to natural resources and energy, nr. 58/2008Act on the survey and utilisation of ground resources1998 No. 57 10 June