Driving Green: The Rise of Electric Cars in Iceland

By standards such as population and population density, Iceland is a small country. But the whole story is not always revealed by such steps. Policy makers, scientists and anyone interested in the future of sustainable transport would do well to keep an eye on the vehicle market in Iceland, as the small island nation is becoming a pioneer in electromobility. Electric cars do not burn fossil fuels and therefore do not emit CO2 into the atmosphere. They are also cheaper to maintain and easier to drive.

The electric car boom in Iceland

In the last four years, Iceland has quietly become one of the world’s leading markets for electric cars, but the foundations for low-carbon transport were laid there decades ago. Renewable energy, low electricity tariffs combined with high fossil fuel prices and a high rate of urbanization make Iceland an ideal market for electric cars.

Nearly 100% of the electricity in Iceland is generated from renewable sources. Approximately three-quarters of the electricity generated domestically come from hydropower and one-quarter from geothermal. In Europe, only Norway has the same capacity to provide 100% renewable energy for electric vehicles.

Consumers have access to this low-carbon energy at a comparatively low rate, 20 percent lower than the average electricity price in the EU, whereas traditional car fuel prices in Iceland are among the highest worldwide.

Geysir leads the way by providing a variety of environmentally friendly collection of hybrid and electric cars with the energy exchange being a real thing. 

How to use it?

In cooperation with ON Power, the Icelandic Environmental Protection Agency closed ring road no. 1 with electric charging stations at the beginning of 2018, with no two stations more than 100 kilometres apart. These charging stations are available for all our electric vehicles, and charging is as simple as pulling up to the station and plugging in the vehicle.

All our electric cars are rented with a charging key that gives access to all Icelandic ON Power stations. The key collects all payments and at the end of the rental the charge is billed.

The Range

The range of electric cars varies from model to model, but the most popular range is between 150 and 200 kilometres. This range makes the car ideal for city driving, but as long as you take charging stations into account in your planning, you can also have a pretty good road trip. Check out Roy’s road trip on the Geysir blog if you need inspiration for a road trip.

The Cost

At ON Power charging stations you can charge 39 ISK per minute. An average electric car can be charged up to 80 per cent with a 20-minute charging time, as most ON Power charging stations charge 50 kWh/hour. with a charging time of 40 minutes, the battery should be almost full, so you should plan your stops accordingly.

Iceland is one of the most urbanised areas in the world. 94 percent of the country's population live in urban areas, two thirds of them in the capital Reykjavik. In addition, the size of the country is ideal for electric vehicles: 500 kilometres from west to east and around 350 kilometres from north to south. This means that most journeys are within the range of an electric car. On average, Icelandic car owners cover around 38 km per day.

Conclusion

Iceland therefore offers perfect conditions for electromobility. While Iceland's power grid, geography or demographics cannot easily be copied by other countries, some of the incentives for electric cars in Iceland could be transferred to other markets. In particular, the financial incentives to equalize the cost differences between e-vehicles and conventional vehicles and the expansion of the charging infrastructure to increase the convenience of e-vehicle users.

For any assistance in Iceland, get in touch with Swapp Agency.