Global Lessons in Clean Power from Iceland
Landsvirkjun is the National Power Company of Iceland, and they generate electricity solely from 100% renewable sources—hydropower, geothermal, and wind. They are not only Iceland’s largest energy producer, supplying over 70% of the country’s electricity, but also one of the greenest utilities in the world.
With one of the lowest carbon footprints in the global energy sector, they have already shown the world that a fully renewable energy system is not just a vision—it’s reality.
A History of Bold Choices
Iceland’s renewable journey was born out of necessity. In the 1970s and 80s, the country made the historic decision to abandon oil heating in favour of geothermal energy. Those choices transformed the economy, lowering costs, improving air quality, and securing energy independence.
“That legacy of courage defines Landsvirkjun’s leadership today,” Arnarson explains. “We view climate action as an obligation, not an option. Every investment must serve future generations, just as earlier decisions served us.”
Balancing Progress and Protection
Achieving 100% renewable electricity is a milestone, but the transition continues. Demand is rising, driven by electrification, digital industries, and new export sectors. At the same time, Iceland’s unique landscapes require protection.
“Our first responsibility is to nature and communities,” says Arnarson. “That means careful dialogue, strict environmental standards, and restoring landscapes after construction. We’ve proven that renewable energy can be reliable, affordable, and respectful of the environment.”
A New Industrial Era
This fall, Prime Minister Kristrún Frostadóttir unveiled the broad strokes of Iceland’s industrial policy to 2035. The plan emphasizes high-productivity jobs in export industries—ranging from ICT and biotech to food processing and health tech—while streamlining permits for new power projects.
“These reforms are pivotal,” Arnarson says. “Fewer licensing hurdles and faster approvals align directly with our ambition to deliver clean capacity where it’s needed—whether for communities, industry, or electrified transport. It marks the beginning of a new era of major development projects.”
Iceland is in an exceptionally strong position as we enter the Fourth Industrial Revolution. It is the most peaceful country in the world, marked by prosperity, equality, and stability—and its climate is particularly well suited for modern, high-tech industries such as data centres.
Sharing Iceland’s Lessons
Looking ahead, Landsvirkjun’s role is threefold: build responsibly, optimize existing assets, and lead by example through transparent climate accounting and green finance. Iceland’s national target is carbon neutrality by 2040, and Landsvirkjun sees itself as one of the platforms that will make it possible.
Globally, the company aims to share its expertise—from system planning to pumped-storage and renewable integration—helping other nations accelerate their transitions.
“Iceland shows that bold choices pay off,” Arnarson concludes. “If a small island in the North Atlantic can run entirely on renewables, then it’s within reach for others. The transition is possible, it is affordable, and it is essential.”
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