Electricity prices for households in Iceland H1 2012- H1 2022

In Iceland, electricity prices for households with a consumption between 2.500 and 5.000 kilowatt-hours averaged 15.3 euro cents per kilowatt-hour in the first half of 2022. Residents of Iceland noticed a steep increase in their power bills from 2013 until 2017, before the prices fell again until 2020. The electricity prices then increased again in 2021.

Renewable energy in Iceland

Iceland has been able to take advantage of the local environment to generate significant amounts of energy from renewable resources. Hydropower is the first source of electricity generation in the country, making up for over 70 percent of the total electricity production of Iceland. The country has a hydropower capacity of 2.114 megawatts.

Cheap electricity

Compared to the EU average electricity price, Iceland's electricity is significantly cheaper. For instance, the average price for EU households with a consumption between 2,500 and 5,000 kilowatt-hours annually was 23.69 euro cents in the second half of 2021, around 10 cents more than in Iceland.