Iceland has large resources of hydroelectric power and geothermal energy

Iceland has large resources of hydroelectric power and geothermal energy. It is unique in that it produces nearly all its electricity from emission-free, sustainable natural resources. Iceland is a world leader in the use of renewable energy. While many cities struggle with soaring energy costs and the burdens of pollution, due to a reliance on limited energy supplies like oil or coal, nearly 90% of homes in Iceland are heated with geothermal water. Geothermal steam has been used directly for a number of industrial processing applications in Iceland for decades, such as vegetable farming in greenhouses. It has also been developed for electricity generation on a small but growing scale. Natural conditions in Iceland favour the use of hydropower for the generation of electricity.