Iceland is a world leader in renewable energy. 100% of Iceland's electricity grid is produced from renewable resources. In terms of total energy supply, 85% of the total primary energy supply in Iceland is derived from domestically produced renewable energy sources. Geothermal energy provided about 65% of primary energy in 2016, the share of hydropower was 20%, and the share of fossil fuels was 15%.

Landsvirkjun, the National Power Company of Iceland, is Iceland's largest electricity generator. Landsvirkjun operates 21 power plants in Iceland concentrated on five main areas of operation.