Why are electricity costs high in Iceland?

In Iceland, the high electricity costs are driven by the costs of hydro power and geothermal energy sources, which have higher upfront investments than conventional fossil fuel power plants like gas or coal. However, they have lower operational costs.

Does Iceland have a competitive electricity price?

Electricity prices for energy intensive industries in Iceland are relatively competitive at a global level. This is mainly due to the abundant and natural energy sources in Iceland, such as hydro power and geothermal energy. Only a few countries or regions in North America or Europe can benefit from similar energy sources.

What is Iceland's electricity supply & demand?

Iceland is the world’s largest green energy producer per capita and the largest electricity producer per capita, with approximately 55,000 kWh per person per year in electricity supply. In comparison, the EU average is less than 6,000 kWh.

What is the average network cost in Iceland?

The average network cost in Iceland, based on all consumption categories in the Eurostat database, is around 19 USD/MWh and was the cheapest in comparison to the average network costs of other European countries in 2018. However, detailed network costs for Iceland are only available for consumption up to 20 GWh.

Is Iceland's energy supply good?

Iceland's energy supply is very cost-competitive due to its almost 100% carbon-free electricity generation and high potential of natural energy resources.

Are UK hourly electricity prices correlated with Iceland hydrological conditions?

We have assumed no correlation between Iceland hydrological conditions and the UK hourly electricity prices represented in this considered set.