Iceland barred from exporting green electricity certificates

Although Iceland is not connected to the European electricity grid, until recently it was a significant exporter of renewable electricity. Green energy was exported to mainland Europe through the European Guarantees of Origin system. The European standardisation body AIB has now suspended this.

Iceland is a major producer of renewable energy thanks to its natural conditions. Almost 100% of its electricity is generated from geothermal and hydropower sources. Under European legislation, producers are issued Guarantees of Origin for this electricity, which can then be sold to consumers interested in green energy. As reported by Industry Decarbonization, the European standardisation body AIB has now barred Iceland from selling these guarantees abroad.

Icelandic electricity is not only green but also cheap, making the island attractive to industrial companies. The aluminium industry, for example, requires large amounts of electricity: the three aluminium smelters in Iceland together consume more than half of the electricity produced domestically. All three aluminium companies report that their electricity comes from renewable sources.