What can �ֻ�ֱ�� learn from Iceland’s geothermal success?

A person standing is answering questions to a group of people who are sitting around a table. — Photo by Amanda Byrd/ACEP
Erlingur Gudleifsson answers questions on energy in Iceland to a group of �ֻ�ֱ��ns during their visit to Iceland in 2023.

By Erlingur (Eli) Gudleifsson
July 20, 2026

People around the world know Iceland for its geothermal energy. But what if Iceland’s greatest energy asset isn’t geothermal itself? What if it’s the people who developed knowledge and expertise and the workforce that grew alongside it?

That question sits at the center of my current research. When I first began working with the �ֻ�ֱ�� ֻ�ֱ�� Center for Energy and Power, I wasn’t studying energy. As an Icelander, I was initially interested in another Icelandic success story: how innovation and industry development helped transform the country’s fishing sector. But conversations with Gwen Holdmann, ACEP’s founder and chief scientist, led me to look at geothermal development through a different lens.

Today, Iceland is globally recognized for its geothermal energy. More than 90 percent of homes are heated with geothermal resources, and roughly one-third of the country’s electricity comes from geothermal power plants. Together with hydropower, they provide about 99 percent of Iceland’s electricity.

What is often overlooked, however, is that Iceland’s success was not simply the result of abundant geothermal resources. Many countries possess geothermal potential. Far fewer have managed to build an entire knowledge ecosystem around it.

Nearly a century ago, Iceland was among the poorest countries in Europe. At the time, few could have imagined that geothermal energy would become one of the foundations of the country’s development. Progress came gradually. Wells were drilled, pipelines were laid, and district heating systems were expanded. As communities solved real-world problems, geoscientists, engineers, contractors, utility workers and policymakers gained practical experience. Over time, that experience accumulated into a body of human knowledge that became one of Iceland’s most valuable assets.

Knowledge that once belonged to a handful of specialists became embedded within universities, research organizations, utilities, government agencies and private companies. The result was not only an energy transition but the creation of national expertise that continues to support innovation today.

That expertise eventually became an export.

Steam is spewing out of a big pipe — Photo by Erlingur Gudleifsson/ACEP
A geothermal well vents steam at a power plant in Theistareykir, Northeast, Iceland, in 2024. This flow test is used to verify the performance and characteristics of the well before it’s connected to the geothermal plant for power generation

For nearly 50 years, Iceland has welcomed geothermal professionals from around the world through the . More than 800 participants from dozens of countries have traveled to Iceland to learn directly from practitioners working in the field. They returned home to help develop geothermal projects in their own countries, while maintaining professional connections with Icelandic experts and institutions. Those relationships have created international partnerships, consulting opportunities, research collaborations and business connections that continue to benefit Iceland’s geothermal sector.

Just as importantly, the continued expansion of geothermal infrastructure over nearly a century allowed knowledge to accumulate and transfer from one generation of experts to the next. Each project created new opportunities to learn, refine practices and train future leaders.

As �ֻ�ֱ�� grows as a global leader in remote energy systems and microgrid development, what can it learn from this experience?

Communities across �ֻ�ֱ�� have spent decades solving difficult challenges associated with integrating diesel generation, renewable energy, battery storage and advanced controls in some of the world’s most demanding operating environments. The expertise developed through this work is substantial. But expertise alone does not guarantee long-term value. Knowledge must be captured, shared and expanded.

Two people in hard hats talking in a facility. — Photo by Erlingur Gudleifsson/ACEP
Sara Lind, right, director of Climeworks in Iceland, gives ACEP’s Gwen Holdmann a tour of its facilities in 2024 and explains how its equipment captures carbon dioxide from the atmosphere. Climeworks is a Swiss company specializing in direct air capture and sequestration technology.

Early findings from my research suggest that Iceland’s geothermal success did not emerge solely from laboratory and research efforts. Rather, it developed through decades of learning-by-doing as community members, engineers, researchers and policymakers built geothermal infrastructure across the country.

Another surprising finding is the role infrastructure itself played in creating knowledge. Pipelines, drilling programs, power plants and district heating systems were not merely outcomes of development. They became platforms for learning and knowledge transfer.

The next phase of the research will explore �ֻ�ֱ��’s own energy knowledge landscape through the lens of Iceland’s geothermal experience. As �ֻ�ֱ�� faces rising energy costs, workforce challenges and the need for long-term energy resilience, it feels increasingly important to understand how �ֻ�ֱ�� can better recognize, strengthen and leverage the human expertise it has already developed.

The goal is not to make �ֻ�ֱ�� the next geothermal leader. Rather, understanding how knowledge becomes an economic asset may prove just as valuable as developing the next generation of energy technologies.

This work relates to the Department of Navy award N00014-22-1-2049 issued by the Office of Naval Research. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of the Office of Naval Research.

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Erlingur (Eli) Gudleifsson is a researcher at the �ֻ�ֱ�� Center for Energy and Power.