Iceland's Geothermal Success Story Inspires Global Adoption
Iceland now generates 100% of its electricity from renewable sources, with geothermal providing the baseload. Other nations are studying the model for application in volcanic regions worldwide.
By Emily Watson - Education & Social Issues Correspondent
Last Updated: December 14, 2025
Iceland geothermal success
Complete Transition
Iceland generates 100% of electricity from renewables: 70% hydro and 30% geothermal. The country also heats 90% of homes directly with geothermal hot water.
Economic Benefits
Cheap, abundant power has attracted energy-intensive industries like aluminum smelting and data centers. Iceland's energy independence shields the economy from fossil fuel price volatility.
Global Applications
Countries along the Pacific Ring of Fire—Indonesia, Philippines, Japan—are expanding geothermal development based on Iceland's example. New drilling technologies make previously inaccessible resources viable.