Iceland is a Nordic Island country in the North Atlantic Ocean and the most sparsely populated country in Europe. The capital and largest city is Reykjavík. Reykjavík and the surrounding areas in the southwest of the country are home to over two-thirds of the population. Iceland is the only part of the Mid-Atlantic Ridge that rises above sea-level, and its central volcanic plateau is erupting almost constantly.

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Due to the geological location of Iceland, the high concentration of volcanoes in the area is often an advantage in the generation of geothermal energy, the heating and making of electricity. During winter, pavements near these areas (such as Reykjavík and Akureyri) are heated up. Five major geothermal power plants exist in Iceland, which produce approximately 26.2% of the nation's electricity. In addition, geothermal heating meets the heating and hot water requirements of approximately 87% of all buildings in Iceland. Apart from geothermal energy, 73.8% of the nation's electricity is generated by hydro power, and 0.1% from fossil fuels.