What Happened
- In June 2025, Iceland achieved its first-ever full calendar month powered entirely by renewables generating 100% of its electricity from geothermal and hydropower, with an impressive 90% of heating needs met by geothermal sources.
- According to the National Energy Authority, the energy mix was approximately 73% hydropower and 27% geothermal, marking one of the world’s highest renewable electricity penetrations.
Why It’s Important
- Energy independence: Iceland operates free from fossil fuel imports, ensuring both economic and climate resilience.
- Heating sustainability: With geothermal heating already covering most homes (~90%), families enjoy affordable warmth without carbon emissions .
- Global exemplar: Iceland’s achievement demonstrates that even modern economies can maintain a fully renewables-powered grid—offering a viable blueprint for other nations.
Broader Context & Innovation
- Industrial use: Excess renewable energy powers green technologies like hydrogen, e‑fuel production, and even energy‑intensive data centers.
- Backup resilience: Following recent volcanic eruptions (2023–2025), Iceland invested in underground geothermal wells and reinforced pipelines to ensure continued energy delivery despite natural hazards.
- Decarbonization goal: The government aims to reach carbon neutrality by 2040, leveraging this strong clean energy foundation.
Why It’s Inspiring
- Proof of viability: Iceland proves that renewables can reliably power modern societies.
- Scalable model: Combining geothermal and hydro shows a mature, integrated approach others can adapt.
- Resilience in action: Investment in infrastructure ensures climate and natural-event readiness.
