As of 2025, the average price for lithium-ion battery systems in Iceland hovers around $150–$200 per kWh. That’s 10–15% higher than EU averages, thanks to those pesky import fees. But here’s the kicker: Iceland’s unique energy profile means batteries aren’t just for grid backup.
Iceland''s energy supply is very cost-competitive due to its almost 100% carbon-free electricity generation and high potential of natural energy resources.
This significant achievement is primarily supported by hydropower, contributing more than two-thirds of the total electricity supply from the turquoise waters flowing through the nation''s rivers and waterfalls. The remaining close to a third comes from geothermal energy, harnessing the Earth''s heat beneath Iceland''s volcanic landscape.
Despite its achievements in clean energy, Iceland has seen a downward trend in electricity consumption per person over recent years. As of 2025, electricity consumption stood at around 46,963 kWh per person, marking a significant reduction of nearly 9,845 kWh from the peak consumption level recorded in 2015.
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