Iceland: 99.99%
Iceland, the Nordic island nation known for its geysers and volcanic eruptions, is another European country that has been successful in its energy transition process. Unlike other countries, Iceland’s particular geological characteristics made developing solar energy incredibly challenging, as the country’s unpredictable weather conditions and long winters due to proximity to the North Pole made developing these technologies difficult. The country relies mainly on hydroelectric and geothermal generation to power the grid, which accounts for 70% and 30% of the grid, respectively.
Landsvirkjun, the national power company in Iceland, owns 15 hydropower stations, 3 geothermal stations, and 2 wind turbines across the island. The largest hydroelectric dam, the Kárahnjúkar Hydropower Project, has an installed capacity of 690 megawatts, making it one of the largest dams in Europe. For geothermal electricity generation, it originates from volcanic activity beneath its surface; the volcanic activity heats underground water into steam, which is then brought to the surface and used to turn turbines that generate electricity to heat up nearly 90% of Iceland’s homes during its long and cold winters.
A September 2020 report released by the government of Iceland outlines a comprehensive energy policy with a focus on transitioning to a fully renewable energy system by 2050, which includes phasing out of fossil fuels, promoting energy efficiency, as well as attempts to expand the currently limited wind and solar energy sector, to reach of goal of carbon neutrality in 2050.