From Iceland to Bhutan: 7 Nations Powering Grids with 100% Renewable Energy

As the world grapples with the climate crisis, transitioning from fossil fuels to clean, renewable energy has become an urgent global imperative. While many countries are still struggling to decarbonize their electricity grids, a few nations are leading the way—quietly, consistently, and impressively. Seven countries now generate nearly 100% of their electricity from renewable sources, setting a global benchmark for sustainability, energy independence, and innovation.

From wind-swept mountains to geothermal geysers and cascading hydroelectric dams, these countries harness natural forces not just to power their homes and industries, but to shape a cleaner, greener future for all.

“These pioneers show that a fully renewable energy grid isn’t a distant dream—it’s a present-day reality,” says Fatih Birol, Executive Director of the International Energy Agency (IEA).

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The 7 Renewable Energy Leaders

1. Iceland – 100% Renewable (Hydro & Geothermal)

Iceland is the undisputed global leader in renewable electricity. Thanks to its volcanic geology and abundant rivers, the country generates approximately 73% of its electricity from hydropower and 27% from geothermal sources.

The nation has completely eliminated the need for fossil fuels in electricity generation. Its success has inspired the development of geothermal energy in other regions, from Kenya to Indonesia.

“Nature gave us the resources, and policy made it possible,” says Gudni Johannesson, Director General of Iceland’s National Energy Authority.

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2. Paraguay – 100% Renewable (Hydropower)

Paraguay derives almost 100% of its electricity from hydropower, largely thanks to the Itaipu Dam, one of the largest hydroelectric facilities in the world. The dam, shared with Brazil, not only powers all of Paraguay but exports excess electricity, providing a major source of national income.

While Paraguay’s clean energy achievement is remarkable, challenges remain in electrifying transportation and industry with the same level of sustainability.

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3. Norway – 98–99% Renewable (Hydropower)

Known for its majestic fjords and icy rivers, Norway generates about 98–99% of its electricity from hydropower, backed by a mix of wind and a small percentage of thermal energy.

The country is also a global leader in EV adoption, driven by its clean grid. More than 80% of new car sales in Norway are electric—proving the synergy between clean electricity and clean transportation.

“We’ve made the most of our geography and invested early in renewables,” says Anders Bjelland, Senior Advisor at Statkraft, Norway’s largest state-owned energy company.

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4. Albania – 100% Renewable (Hydropower)

Though less well known on the global energy map, Albania has quietly become a renewable energy champion. The country generates 100% of its electricity from hydropower during wet years, though it sometimes imports during dry periods.

The Albanian government is now investing in solar and wind to diversify and stabilize the grid, aiming for year-round self-sufficiency without fossil fuels.

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5. Bhutan – 100% Renewable (Hydropower)

Nestled in the Himalayas, Bhutan has committed itself to environmental protection like no other. The country not only generates all its electricity from hydropower but is also carbon negative, absorbing more CO₂ than it emits.

Bhutan exports its surplus clean energy to India, turning sustainability into a diplomatic and economic asset.

“For Bhutan, happiness includes harmony with nature,” says Dasho Tenzing Norbu, Director of the National Environment Commission Secretariat.

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6. Lesotho – 100% Renewable (Hydropower)

A small, mountainous nation in Southern Africa, Lesotho gets nearly all its electricity from the ‘Muela Hydropower Station’, part of the Lesotho Highlands Water Project. It supplies enough power for domestic needs and exports water to neighboring South Africa.

Though energy access remains uneven in rural areas, Lesotho is planning investments in solar mini-grids to reach full electrification sustainably.

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7. Ethiopia – 96–98% Renewable (Hydropower, Wind, Geothermal)

Ethiopia is one of Africa’s clean energy success stories. Its massive hydropower potential—highlighted by the Grand Ethiopian Renaissance Dam (GERD)—has allowed the country to generate more than 95% of its electricity from renewables.

Wind and geothermal sources are also expanding rapidly. Ethiopia aims to become East Africa’s renewable energy hub and export clean electricity to neighboring countries.

“Africa doesn’t need to follow the fossil fuel path. We can leapfrog to clean energy,” says Dr. Seleshi Bekele, Ethiopia’s former Minister of Water and Energy.

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What These Countries Have in Common

Despite their geographic and economic diversity, these seven countries share key characteristics that enabled their renewable revolutions:

• Abundant natural resources (hydropower, geothermal, or wind)
• Early investment in renewable infrastructure
• Strong government policies and political will
• Public support for sustainable development
• Regional energy trade partnerships in some cases

These nations also demonstrate that renewable energy is not just for the rich. Countries like Bhutan, Lesotho, and Ethiopia prove that with the right planning, even low-income or developing nations can build clean power systems.

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Lessons for the Rest of the World

As countries struggle with the twin crises of energy security and climate change, the success of these seven nations offers valuable lessons.

“If more governments planned for renewables the way these countries have, we’d be a lot closer to our climate goals,” says Christiana Figueres, former Executive Secretary of the UNFCCC.

Other countries are beginning to follow suit. Costa Rica, Uruguay, and New Zealand are above 90% renewables and climbing. Meanwhile, Chile, India, and Morocco are investing heavily in solar and wind to reshape their electricity systems.

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The Road Ahead: Not Just Clean, but Resilient

While these countries have achieved near-100% renewable electricity, the next challenge is to make that energy reliable year-round and extend sustainability to transportation, heating, and industry. Climate change, with its impacts on rainfall and glaciers, could also affect hydropower reliability.

That’s why nations like Norway and Ethiopia are investing in grid storage, diversification, and regional integration to ensure a resilient, flexible energy future.

“Renewable energy isn’t just about reducing carbon—it’s about building energy systems that work for people and the planet,” says Birol.

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Conclusion: A Blueprint for a Cleaner World

The achievements of Iceland, Paraguay, Norway, Albania, Bhutan, Lesotho, and Ethiopia are proof that a 100% renewable electricity grid is possible—today. These countries have forged a path through innovation, determination, and natural wisdom.

Their experience offers not just hope, but a roadmap—one that other nations can follow to build a future powered by the sun, wind, and water, rather than coal and oil.

“Clean electricity is not a dream. It’s a decision,” says Tenzing Norbu. “And it’s a decision the world must make—urgently.”