Toward a 100% renewable energy future in Iceland: scenario analysis of geothermal, biofuel, and electric vehicle integration
Corresponding Author(s) : Hossein Yousefi
Future Energy,
Vol. 4 No. 4 (2025): November 2025 Issue
Abstract
This study investigates the transition paths towards a 100% renewable energy system in Iceland through scenario analysis and simulation using the Energy PLAN software. Because of its unique geographical location and abundant geothermal resources, Iceland is a case study for renewable energy. In the present research, three primary scenarios are considered. The EV scenario is the substitution of fossil-fuel vehicles with EVs, which would imply that the proportion of renewable energy rises to 91.2% and CO₂ emission falls from 1.98 million tons in 2022 to 1.27 million tons by 2035. The Hybrid scenario, beyond the expansion of EVs, also includes the use of biofuels in industrial and maritime sectors, leading to an increase in the share of renewable energy to 96.6% and reducing CO₂ emissions down to 0.49 million tons. In contrast, the Business as Usual (BAU) scenario keeps the current system without structural changes, resulting in only a marginal increase in renewable energy share and an escalation of CO₂ emissions to 2.58 million tons. Alongside technical and environmental analysis, this study assesses the economic, social, and political aspects of the transition to a sustainable energy system. It highlights the importance of supportive policies, stronger regulations, and greater public awareness as key factors for success. Overall, the comprehensive insights provided by this research offer valuable guidance for policymakers and stakeholders aiming to reduce reliance on fossil fuels and enhance Iceland’s environmental performance.
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- Pambudi, N.A. and D.K. Ulfa, The geothermal energy landscape in Indonesia: A comprehensive 2023 update on power generation, policies, risks, phase and the role of education. Renewable and Sustainable Energy Reviews, 2024. 189: p. 114008.
- Marczinkowski, H.M. and L. Barros, Technical approaches and institutional alignment to 100% renewable energy system transition of Madeira Island—Electrification, smart energy and the required flexible market conditions. Energies, 2020. 13(17): p. 4434.
- Yousefi, H., et al., Developing the geothermal resources map of Iran. Geothermics, 2010. 39(2): p. 140-151.
- Rasaei, Fateme, et al. “Optimal Selection of CSP Site for Desalination System Using GIS and AHP Method in Hormozgan Province, Iran.” Energy Reports, vol. 13, 2025, pp. 2255–68, https://doi.org/10.1016/j.egyr.2025.01.082.
- Porubova, J. and G. Bazbauers, Analysis of long-term plan for energy supply system for Latvia that is 100% based on the use of local energy resources. Environmental and Climate Technologies, 2010. 4(1): p. 82-90.
- Raza, M.A., et al., Towards achieving 100% renewable energy supply for sustainable climate change in Pakistan. Sustainability, 2022. 14(24): p. 16547.
- Yousefi, H., S. Ehara, and Y. Noorollahi. Geothermal potential site selection using GIS in Iran. in Proceedings of the 32nd workshop on geothermal reservoir engineering, Stanford University, Stanford, California. 2007.
- Razeghi, Marziyeh, et al. “Evaluating the Economic Impact of Solar Energy on Local Industries in Semnan, Iran.” Future Sustainability, vol. 03, no. 01, pp. 49–58, https://doi.org/10.55670/fpll.fusus.3.1.5.
- https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en
- Fardnia, Khashayar, et al. “A Bibliometric Analysis of Carbon and Water Footprints in Renewable Energy: The Post-COVID-19 Landscape.” Green Technologies and Sustainability, vol. 3, no. 3, 2025, https://doi.org/10.1016/j.grets.2024.100162.
- Abdoos, Mahmood, et al. “Forecasting Solar Energy Generation in the Mediterranean Region up to 2030–2050 Using Convolutional Neural Networks (CNN).” Cleaner Energy Systems, vol. 10, 2025, https://doi.org/10.1016/j.cles.2024.100167.
- Palomo-Torrejón, E., et al., Economic and environmental benefits of geothermal energy in industrial processes. Renewable Energy, 2021. 174: p. 134-146.
- Yousefi-Sahzabi, A., et al., GIS aided prediction of CO2 emission dispersion from geothermal electricity production. Journal of Cleaner Production, 2011. 19(17-18): p. 1982-1993.
- Lebbihiat, N., et al., Geothermal energy use in Algeria: A review on the current status compared to the worldwide, utilization opportunities and countermeasures. Journal of Cleaner Production, 2021. 302: p. 126950.
- Ram, M., et al., Energy transition in megacities towards 100% renewable energy: A case for Delhi. Renewable Energy, 2022. 195: p. 578-589.
- Connolly, D., H. Lund, and B.V. Mathiesen, Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union. Renewable and Sustainable Energy Reviews, 2016. 60: p. 1634-1653.
- Parrado-Hernando, G., et al. Modelling of 100% Renewable Energy Systems in Integrated Assessment Models by multi-timeframe regression analysis. in Proceedings of 16th Conference on Sustainable Development of Energy, Water and Environment Systems–SDEWES. 2021. Zagreb: SDEWES.
- Khazaee, M., et al., Assessment of renewable energy production capacity of Asian countries: a review. New Energy Exploitation and Application, 2022. 1(2): p. 25-41.
- Meschede, H., et al., A review of 100% renewable energy scenarios on islands. Wiley Interdisciplinary Reviews: Energy and Environment, 2022. 11(6): p. e450.
- Dominković, D.F., et al., Zero carbon energy system of South East Europe in 2050. Applied energy, 2016. 184: p. 1517-1528.
- Reyseliani, N. and W.W. Purwanto, Pathway towards 100% renewable energy in Indonesia power system by 2050. Renewable Energy, 2021. 176: p. 305-321.
- DaneshvarDehnavi, S., et al., Can 100% renewable power system be successfully built? Renewable Energy, 2021. 177: p. 715-722.
- Akuru, U.B., et al., Towards 100% renewable energy in Nigeria. Renewable and Sustainable Energy Reviews, 2017. 71: p. 943-953.
- Al Katsaprakakis, D., et al., Faroe Islands: towards 100% RES penetration. Renewable Energy, 2019. 135: p. 473-484.
- Rey-Costa, E., et al., Firming 100% renewable power: Costs and opportunities in Australia's National Electricity Market. Renewable Energy, 2023. 219: p. 119416.
- Icaza-Alvarez, D., et al., Decarbonization of the Galapagos Islands. Proposal to transform the energy system into 100% renewable by 2050. Renewable Energy, 2022. 189: p. 199-220.
- Child, M., et al., Flexible electricity generation, grid exchange and storage for the transition to a 100% renewable energy system in Europe. Renewable energy, 2019. 139: p. 80-101.
- Al-Ghussain, L., et al., Techno-economic feasibility of thermal storage systems for the transition to 100% renewable grids. Renewable Energy, 2022. 189: p. 800-812.
- Palomba, V., et al., Implementation of a solar-biomass system for multi-family houses: Towards 100% renewable energy utilization. Renewable energy, 2020. 166: p. 190-209.
- Habib, A., et al., Evaluation of the effect of high penetration of renewable energy sources (RES) on system frequency regulation using stochastic risk assessment technique (an approach based on improved cumulant). Renewable Energy, 2018. 127: p. 204-212.
- Tabrizi, A., Yousefi, H., Abdoos, M. et al. Evaluating renewable energy adoption in G7 countries: a TOPSIS-based multi-criteria decision analysis. Discov Energy 5, 2 (2025). https://doi.org/10.1007/s43937-025-00064-w
- IRENA. Reneweble Energy Statistic 2023. 2023, file:///C:/Users/Muhyeddin/Downloads/Statistical Review of World Energy.pdf.
- Lund, H., et al., EnergyPLAN–Advanced analysis of smart energy systems. Smart Energy, 2021. 1: p. 100007.
- Tozzi Jr, P. and J.H. Jo, A comparative analysis of renewable energy simulation tools: Performance simulation model vs. system optimization. Renewable and Sustainable Energy Reviews, 2017. 80: p. 390-398.
- Jahangir, M.H., et al., Reducing carbon emissions of industrial large livestock farms using hybrid renewable energy systems. Renewable Energy, 2022. 189: p. 52-65.
References
Pambudi, N.A. and D.K. Ulfa, The geothermal energy landscape in Indonesia: A comprehensive 2023 update on power generation, policies, risks, phase and the role of education. Renewable and Sustainable Energy Reviews, 2024. 189: p. 114008.
Marczinkowski, H.M. and L. Barros, Technical approaches and institutional alignment to 100% renewable energy system transition of Madeira Island—Electrification, smart energy and the required flexible market conditions. Energies, 2020. 13(17): p. 4434.
Yousefi, H., et al., Developing the geothermal resources map of Iran. Geothermics, 2010. 39(2): p. 140-151.
Rasaei, Fateme, et al. “Optimal Selection of CSP Site for Desalination System Using GIS and AHP Method in Hormozgan Province, Iran.” Energy Reports, vol. 13, 2025, pp. 2255–68, https://doi.org/10.1016/j.egyr.2025.01.082.
Porubova, J. and G. Bazbauers, Analysis of long-term plan for energy supply system for Latvia that is 100% based on the use of local energy resources. Environmental and Climate Technologies, 2010. 4(1): p. 82-90.
Raza, M.A., et al., Towards achieving 100% renewable energy supply for sustainable climate change in Pakistan. Sustainability, 2022. 14(24): p. 16547.
Yousefi, H., S. Ehara, and Y. Noorollahi. Geothermal potential site selection using GIS in Iran. in Proceedings of the 32nd workshop on geothermal reservoir engineering, Stanford University, Stanford, California. 2007.
Razeghi, Marziyeh, et al. “Evaluating the Economic Impact of Solar Energy on Local Industries in Semnan, Iran.” Future Sustainability, vol. 03, no. 01, pp. 49–58, https://doi.org/10.55670/fpll.fusus.3.1.5.
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en
Fardnia, Khashayar, et al. “A Bibliometric Analysis of Carbon and Water Footprints in Renewable Energy: The Post-COVID-19 Landscape.” Green Technologies and Sustainability, vol. 3, no. 3, 2025, https://doi.org/10.1016/j.grets.2024.100162.
Abdoos, Mahmood, et al. “Forecasting Solar Energy Generation in the Mediterranean Region up to 2030–2050 Using Convolutional Neural Networks (CNN).” Cleaner Energy Systems, vol. 10, 2025, https://doi.org/10.1016/j.cles.2024.100167.
Palomo-Torrejón, E., et al., Economic and environmental benefits of geothermal energy in industrial processes. Renewable Energy, 2021. 174: p. 134-146.
Yousefi-Sahzabi, A., et al., GIS aided prediction of CO2 emission dispersion from geothermal electricity production. Journal of Cleaner Production, 2011. 19(17-18): p. 1982-1993.
Lebbihiat, N., et al., Geothermal energy use in Algeria: A review on the current status compared to the worldwide, utilization opportunities and countermeasures. Journal of Cleaner Production, 2021. 302: p. 126950.
Ram, M., et al., Energy transition in megacities towards 100% renewable energy: A case for Delhi. Renewable Energy, 2022. 195: p. 578-589.
Connolly, D., H. Lund, and B.V. Mathiesen, Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union. Renewable and Sustainable Energy Reviews, 2016. 60: p. 1634-1653.
Parrado-Hernando, G., et al. Modelling of 100% Renewable Energy Systems in Integrated Assessment Models by multi-timeframe regression analysis. in Proceedings of 16th Conference on Sustainable Development of Energy, Water and Environment Systems–SDEWES. 2021. Zagreb: SDEWES.
Khazaee, M., et al., Assessment of renewable energy production capacity of Asian countries: a review. New Energy Exploitation and Application, 2022. 1(2): p. 25-41.
Meschede, H., et al., A review of 100% renewable energy scenarios on islands. Wiley Interdisciplinary Reviews: Energy and Environment, 2022. 11(6): p. e450.
Dominković, D.F., et al., Zero carbon energy system of South East Europe in 2050. Applied energy, 2016. 184: p. 1517-1528.
Reyseliani, N. and W.W. Purwanto, Pathway towards 100% renewable energy in Indonesia power system by 2050. Renewable Energy, 2021. 176: p. 305-321.
DaneshvarDehnavi, S., et al., Can 100% renewable power system be successfully built? Renewable Energy, 2021. 177: p. 715-722.
Akuru, U.B., et al., Towards 100% renewable energy in Nigeria. Renewable and Sustainable Energy Reviews, 2017. 71: p. 943-953.
Al Katsaprakakis, D., et al., Faroe Islands: towards 100% RES penetration. Renewable Energy, 2019. 135: p. 473-484.
Rey-Costa, E., et al., Firming 100% renewable power: Costs and opportunities in Australia's National Electricity Market. Renewable Energy, 2023. 219: p. 119416.
Icaza-Alvarez, D., et al., Decarbonization of the Galapagos Islands. Proposal to transform the energy system into 100% renewable by 2050. Renewable Energy, 2022. 189: p. 199-220.
Child, M., et al., Flexible electricity generation, grid exchange and storage for the transition to a 100% renewable energy system in Europe. Renewable energy, 2019. 139: p. 80-101.
Al-Ghussain, L., et al., Techno-economic feasibility of thermal storage systems for the transition to 100% renewable grids. Renewable Energy, 2022. 189: p. 800-812.
Palomba, V., et al., Implementation of a solar-biomass system for multi-family houses: Towards 100% renewable energy utilization. Renewable energy, 2020. 166: p. 190-209.
Habib, A., et al., Evaluation of the effect of high penetration of renewable energy sources (RES) on system frequency regulation using stochastic risk assessment technique (an approach based on improved cumulant). Renewable Energy, 2018. 127: p. 204-212.
Tabrizi, A., Yousefi, H., Abdoos, M. et al. Evaluating renewable energy adoption in G7 countries: a TOPSIS-based multi-criteria decision analysis. Discov Energy 5, 2 (2025). https://doi.org/10.1007/s43937-025-00064-w
IRENA. Reneweble Energy Statistic 2023. 2023, file:///C:/Users/Muhyeddin/Downloads/Statistical Review of World Energy.pdf.
Lund, H., et al., EnergyPLAN–Advanced analysis of smart energy systems. Smart Energy, 2021. 1: p. 100007.
Tozzi Jr, P. and J.H. Jo, A comparative analysis of renewable energy simulation tools: Performance simulation model vs. system optimization. Renewable and Sustainable Energy Reviews, 2017. 80: p. 390-398.
Jahangir, M.H., et al., Reducing carbon emissions of industrial large livestock farms using hybrid renewable energy systems. Renewable Energy, 2022. 189: p. 52-65.