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Regular Review of Energy Efficiency Policies in Iceland (2005)

Published in 2005


Iceland stands out among Energy Charter member states for its extensive use of renewable energy sources. Its electricity and heating comes from hydroelectric power and the geothermal water reserves, providing energy that is accessible, renewable, relatively inexpensive and from which pollution is minimal.

About 90% of all houses in Iceland are heated by energy from geothermal resources, and electricity generation comes either from hydropower (83%) or geothermal energy (17%). Fossil fuels are used only where it is not technologically feasible to use renewable resources, that is, in transport and in the fisheries sector.

The policy of the Icelandic government is to harness clean energy reserves for sustainable development and to improve living standards. Most of the renewable energy sources are still unharnessed. Iceland has also been a pioneer in the production and use of alternative fuels, particularly with regard to hydrogen: a project for hydrogen-powered buses is already operational in Reykjavik.

The Regular Review of Energy Efficiency Policies of Iceland is available in English.