About 85% of the total primary energy supply in Iceland is derived from domestically produced renewable energy sources.

Renewable energy provides almost 100% of electricity production, with about 73% coming from hydropower and 27% from geothermal power.

About 85% of all energy used in Iceland comes from domestically produced renewable energy sources. This is the highest share of renewable energy in any national total energy budget

Geothermal energy production has had some interesting benefits, including the creation of 'The Blue Lagoon' - a potential tourism case study. The possibility of building energy efficient glasshouses to grow tomatoes - a potential agriculture case study and a wide range of other uses.

Iceland is located along the Mid-Atlantic ridge, a divergent boundary where heat from the core of the Earth rises to the surface. The energy produced from this heat. Cold water is pumped down to the igneous rock layers, where it is heated by contact with the hot rocks. Hot water or steam is then piped up and the heat energy is converted to electricity.

Iceland was the first country in the world to create an economy generated through industries fueled by renewable energy, and there is still a large amount of untapped hydroelectric energy in Iceland. In 2002 it was estimated that Iceland only generated 17% of the total harnessable hydroelectric energy in the country.

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