During the 20th century Iceland has emerged from one of Europe’s poorest 
countries, dependent upon imported oil and coal, to a country with one of the 
highest standard of living where practically all stationary energy, and roughly 
72% of primary energy, is derived from indigenous renewable sources (54% 
geothermal, 18% hydropower) with near carbon-free electricity production. This 
is the result of an effective policy in making renewable energy a long-term 
priority in Iceland. Nowhere else does geothermal energy play a greater role in 
providing a nation’s energy supply. It is the policy of the Government of Iceland 
to increase the utilization of the renewable energy resources even further, e.g. 
in the transport sector, in harmony with the environment. A broad consensus 
on conservation of valuable natural areas has been influenced by social 
opposition, increasing over the last decade, against large hydropower and 
some geothermal projects. Moreover, some energy companies plan to take 
green-initiatives in minimizing visual impact of geothermal power-plants to 
further increase public acceptance of geothermal utilization for electric power 
production. The Icelandic Government decided in 1997 to develop a Framework 
Programme for potential power projects. All proposed projects are being 
evaluated and categorized on the energy efficiency and economics but also on 
the basis of the impact that the power developments would have on the 
environment. This complete Framework Programme on the energy resources 
and the value of their conservation is to be presented to the Icelandic 
Parliament for formal consideration in 2010.

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