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How Iceland became the first country to achieve 100% renewable energy
Few places on Earth can demonstrate the unbridled power of nature quite like the ‘land of fire and ice’… Iceland is the youngest country on the globe, formed only 60 million years ago, essentially rendering it Europe’s teenage brother, intent on conveying its hormonal rage through splenetic volcanoes and hot-headed geysers.
While its tectonic temper tantrums once detracted from its viability as a potential homestead, as with all dark clouds, a silver lining was promptly scoped. For early settlers, the momentous geothermal power present was casually utilised for warm bathing and baking bread – essentially like using a Ferrari for its cupholder. Thankfully, alongside the technological alchemy of the modern world, its inherent energy can now be used to power the entire nation.
It’s difficult to comprehend that at the beginning of the 20th century (and largely until the late 70s), Iceland was one of the most impoverished countries in Europe… it now stands as the 15th richest country in the world (per capita). The impetus for this transformation rose during the 1970s, when the global oil crisis made Iceland’s prior reliance on imported fossil fuels untenable, triggering a demand for alternatives.
In response, geologists turned to its abundant natural resources – glacial rivers, waterfalls and volcanic landscapes provided ample opportunities for energy extraction. By the early 80s, almost all energy production had transitioned to renewable sources. Once thick with smog, the air over its cities is now crystal clear – today, 100% of Iceland’s electricity grid is produced from renewable resources – making it the undisputed (ecological) heavyweight champion!
In 2024, every single home in Iceland is heated with renewable energy. Between the years of 1990 and 2014, Iceland’s geothermal electricity production grew by 1700%! Its green energy production per person is approximately 55,000 kWh per person, which becomes significant when contrasted to the EU average of 6,000 kWh – that’s almost 10x more!
In fact, such a veritable surfeit of inexhaustible energy lends itself to a wide range of applications: from warming up streets, beer brewing, heating greenhouses, and fish farms. It sounds like they’re going bananas… and it turns out, they are – Iceland (until recently) boasted Europe’s largest banana plantation!
Having originated in the humid jungles of Southeast Asia, bananas need a hot climate to thoroughly burgeon, and yet in a strange cultural plot twist they’re now flourishing in a country whose name begins with ‘Ice’… due to the growing import costs on various fruits such as strawberries, tomatoes, cucumbers and bananas, there are a range of greenhouses in Reykir utilising the cheap energy to produce isolated, disease-free produce.
Many energy-intensive industrial sectors have risen thanks to these advancements: the country is a significant producer of aluminium, which constitutes a pivotal role in its economy, as well as silicon, pharmaceuticals, biotechnology and the more traditional staples of fresh fish and meat.
Despite the boundless benefits of eco-friendly infrastructure, the transition didn’t occur overnight, nor was it cheap: advocates for renewable energy had to educate and persuade voters to abandon coal, funding had to be generated by convincing investors, securing government grants, and engaging private companies, as well as the introduction of sophisticated engineering to ensure the shift was successful.
However, this undaunted commitment has paid dividends – now all that’s left is convincing the rest of the world: “Twenty-five percent of Europeans live in areas that could benefit from geothermal power”, states Jack Kiruja, a geothermal analyst with the International Renewable Energy Agency, “but none have been as successful in fully exploiting their geothermal resources”.
Kiruja states that Iceland has “clear geothermal regulations, policies that reduce the economic risk of drilling and robust training programs to build technical expertise”, and that it is “laser-focused on finding ways to leverage its geothermal resources”, the implication being that many European countries have been unable or unwilling to prioritise this shift with sufficient speed.
Despite achieving landmark strides in renewable innovation, Iceland is not resting on its laurels: in the next few years, it plans to drill into hell itself… well, almost – the ominously named Krafla Magma Testbed (KMT) Project will bore into a volcano’s magma chamber; seeking to utilise its scorching fumes to generate energy at a scale never before attempted!
Krafla stands as one of the world’s most active volcanic areas, where temperatures soar up to 2,372°F (1,300°C). While the chamber’s close proximity to the surface is advantageous, the greatest challenge (which one doesn’t need a scientist to explain) is not having their equipment melt into a cartoonish puddle.
Iceland’s pioneering sustainability paints an optimistic picture. While it can be granted the advantage of pre-existing natural phenomena, its environmental model is a functional and vitalising triumph; one in which every country should take inspiration. At Odyssey World, we have recently invested a lot of time and energy into environmental stewardship – from surveying our clients, re-examining our offerings, contacting suppliers and taking small steps to optimise every element of our tours to ensure that we are always maintaining a positive impact on the locations we sell!
If you wish to find out more about how we’re doing our bit to propagate the mission of sustainability, visit our Be There page! Alternatively, if Iceland’s raucous natural wonders and breathtaking beauty call out to you, feel free to visit our Icelandic destination page, read our adjoining blogs and browse our tours – and if you desire a bespoke offering, feel free to contact us directly to customise your own adventure: either by emailing us at enquiries@odyssey-world.co.uk or calling us at (+44 117 313 7070)!
