Which Country Has The Highest Renewable Energy Percentage In 2023?

Renewable energy comes from natural sources that are constantly replenished, such as sunlight, wind, rain, tides, waves, and geothermal heat. It provides an alternative to fossil fuels and is key for combating climate change. The world has been rapidly adopting renewable energy, with global capacity more than doubling from around 1,500 GW in 2010 to over 3,100 GW by the end of 2021 [1]. In 2022, renewable energy surpassed coal to become the largest source of electricity generation worldwide [2]. This trend is expected to continue, with renewables projected to generate over half the world’s electricity by 2030 [3].

With global adoption rising, this article examines which country currently has the highest percentage of renewable energy. Determining the renewable energy leader provides insight into which countries are transitioning most rapidly and successfully to sustainable power.

Table of Contents

Iceland

Iceland has vast geothermal and hydropower resources that it has leveraged to achieve 100% renewable electricity generation. According to the Icelandic government, renewable sources provided almost 100% of electricity production, with about 73% coming from hydropower and 27% from geothermal power. Iceland generates over 99% of its electricity from renewable sources, namely hydroelectricity (approximately 80%) and geothermal (approximately 20%), according to Wikipedia.

Some highlights of Iceland’s renewable energy development include:

Iceland was an early pioneer in harnessing geothermal resources for heating and electricity, with the first geothermal power plant opening in 1969.

Today, Iceland ranks among the world leaders in geothermal energy utilization per capita.
The hellisheiði geothermal power plant is the largest in the world in terms of installed capacity.
Iceland has harnessed its abundant rivers and waterfalls to build an extensive hydropower system over the past century.

The 690 MW Kárahnjúkar Hydropower Plant, completed in 2009, is the country’s largest power station.

With its renewable electricity system established, Iceland is now working on transitioning its transportation and industrial sectors to run on clean energy. The country aims to become completely carbon-neutral by 2040.

Norway

Norway has vast renewable energy resources, particularly from hydropower. The country gets over 95% of its electricity from hydropower dams, according to the Norwegian Ministry of Petroleum and Energy. Norway has Europe’s largest hydropower capacity, totaling over 31 GW as of 2020 (https://www.nve.no/energy-market-and-regulation/wholesale-market/hydrological-data/reservoir-levels-and-hydrological-balance/). The country’s terrain and climate are ideal for hydropower generation.

In recent years, Norway has also rapidly expanded wind and solar energy. The government offers incentives for households and businesses to install solar panels, including tax deductions and direct capital subsidies. As of 2020, Norway had 2.1 GW of installed wind capacity and just over 1 GW of solar PV capacity (https://www.ssb.no/en/energi-og-industri/statistikker/elektrisitet/aar-endelige).

According to the International Renewable Energy Agency, renewable energy accounted for 97.6% of Norway’s total electricity generation in 2020 (https://www.irena.org/Statistics/View-Data-by-Topic/Capacity-and-Generation/Statistics-Time-Series). Hydropower made up 93.8% of renewable generation, followed by wind power at 3.4% and bioenergy at 1.7%. Solar power remains small but is growing rapidly, increasing by over 50% from 2019 to 2020.

Denmark

Denmark has been a pioneer in wind power generation and innovation for decades. The Nordic country installed some of the world’s first offshore wind farms in the 1990s, paving the way for the global offshore wind industry.

Denmark now gets over 40% of its electricity from wind power. The Danish government has set ambitious goals to end the use of fossil fuels by 2050. The country aims to cut greenhouse gas emissions by 70% by 2030 compared to 1990 levels.

As of 2021, Denmark had around 6,000 onshore wind turbines with total generation capacity of 5.8 GW. The country also had 1,700 offshore wind turbines with capacity of 2.3 GW. In total, wind power accounted for nearly 50% of Denmark’s electricity consumption in 2021.

Denmark’s long history with wind power has helped drive down costs through expertise and economies of scale. Danish firms like Vestas and Ørsted are now global leaders in wind turbine manufacturing and offshore wind farm development.

Uruguay

Uruguay has seen rapid growth in wind power over the last decade. According to an NPR article, wind power expanded from just a few megawatts in 2007 to over 2,000 megawatts in 2023, accounting for 38% of the country’s total electricity generation. Uruguay has also adopted biomass and solar energy. Biomass, primarily from forestry waste, accounts for over 50% of power generation. Meanwhile, solar capacity has grown from 2 megawatts in 2013 to over 250 megawatts in 2023.

This renewable energy revolution in Uruguay has been driven by proactive policies. In 2008, the government passed a law promoting wind energy. This included tax incentives, priority connections to the grid, and long-term power purchasing agreements. In 2010, Uruguay passed a net metering law to encourage rooftop solar adoption. The state has played an active role, investing in wind farms and providing low-interest loans. According to The Guardian, these policies have enabled renewables to account for 95-98% of Uruguay’s electricity in recent years.

Germany

Germany has made significant progress in renewable energy adoption in recent years. According to Reuters, renewables accounted for 55% of Germany’s electricity generation in 2023, up from about 50% in 2022.

Germany has become a world leader in wind and solar energy capacity. The country ranks in the top 5 worldwide for installed wind and solar power. Major investments in offshore wind farms in the North Sea and Baltic Sea have expanded wind generation. Germany also has an extensive solar PV capacity spread across rooftops and solar parks.

This transition has been enabled by a long-term policy emphasis on phasing out nuclear and coal power. Following the Fukushima nuclear disaster in 2011, Germany committed to closing all its nuclear reactors by 2022. The country has also set phase-out targets for coal power by 2030.

However, Germany faces challenges fully meeting its ambitious renewable energy goals. Complex permitting processes have slowed onshore wind expansion. Community opposition has hampered some transmission line projects needed to distribute renewable power. Ongoing reliance on natural gas as a bridging fuel also remains contentious.

China

China has made massive investments in renewable energy in recent years. According to Reuters, China installed 160 gigawatts (GW) of new solar and wind power capacity in 2022. This brought China’s total solar and wind capacity to over 635 GW, accounting for about 12% of China’s total electricity generation capacity.

China is particularly focused on growing its wind and solar power capacity. In the first half of 2023, China installed 16.9 GW of new wind power capacity and 55 GW of new solar power capacity, already exceeding its annual target according to Fitch Ratings. Hydroelectric power is also a major renewable source in China, supplying about 20% of electricity generation.

These renewable energy investments are helping China meet its climate goals and reduce dependence on coal. However, China still relies on coal for over 60% of its electricity due to its massive energy needs as the world’s most populous country and second largest economy. Going forward, China aims to have non-fossil fuels account for 25% of its energy mix by 2030 as part of its efforts to achieve carbon neutrality by 2060.

Comparison

Some of the top countries in renewable energy percentage include Iceland, Norway, Denmark, Uruguay, and Germany. Here are some key statistics comparing their renewable energy mixes:

Iceland generates nearly 87% of its energy from renewable sources, primarily hydropower and geothermal. Hydropower accounts for around 70% and geothermal for 30% as of 2023.
Norway produces over 96% of its electricity from hydropower alone. Overall, renewables make up about 60% of Norway’s total primary energy supply.

Denmark generates over 60% of its electricity from wind power. Renewables overall account for around 40% of Denmark’s total energy consumption.
In Uruguay, renewables make up over 97% of electricity generation, with 77% coming from hydropower and 20% from wind.
Germany produces over 50% of its electricity from renewables, mostly wind, solar, and biomass. Renewables account for about 17% of Germany’s total energy supply.

According to the International Energy Agency, global renewable electricity generation reached over 30% in 2022 and is projected to reach 42% by 2028. Many countries have set ambitious targets for further increasing renewables by 2030 and beyond.

For example, Denmark aims to reach 100% renewable electricity by 2030. Germany is targeting 80% renewables for gross power consumption by 2030. Costa Rica already reached 98% renewable electricity in 2019 and aims for 100% by 2030.

With falling technology costs and strong policy support, renewables adoption is accelerating globally. However, increased shares of variable renewables require reforms to power systems and markets. Overall, the transition to high shares of renewables remains a key strategy for reducing emissions and fighting climate change.

Highest Percentage

Iceland is the country with the highest percentage of renewable energy, with 86.87% of its energy coming from renewable sources as of 2023 according to Renewable Energy by Country 2023. Iceland generates nearly all of its electricity from hydropower and geothermal sources, taking advantage of its unique topography and geology. The country has abundant geothermal energy due to its location on the Mid-Atlantic Ridge, allowing it to tap into hydrothermal reservoirs for clean energy production.

Iceland has heavily invested in developing geothermal power plants across the country. Combined with its vast hydropower resources from glacial rivers and waterfalls, Iceland has managed to almost completely eliminate fossil fuels for electricity generation. Government policies have also promoted renewable energy adoption through carbon taxes and supporting infrastructure. Iceland’s small population of just 360,000 people across its isolated island territory has enabled an easier transition to high renewable penetration compared to more densely populated nations.

The country still relies on fossil fuels for its transportation and industry sectors. But Iceland’s achievement of generating over 85% of its electricity from renewable hydropower and geothermal resources demonstrates the potential for other nations to scale up renewables with the right policies and investments tailored to utilize their own resource advantages.

Conclusion

To recap, Iceland has the highest percentage of renewable energy usage in 2023 at around 77% of total energy consumption. With ample geothermal and hydropower resources, Iceland has been able to transition away from fossil fuels rapidly. Other leading countries are also making great strides, with Norway, Denmark, Uruguay and Germany all above 50% renewable energy usage.

The future bodes well for further renewable energy growth globally. Projections estimate the share of renewables expanding to over 80% of new power generation capacity added through 2030. With proactive policies, falling technology costs and increased climate change urgency, the transition to clean energy is accelerating.

The widespread adoption of renewable energy is critical for meeting global climate change targets and mitigating environmental damage from fossil fuel usage. As countries like Iceland demonstrate, high shares of renewables are achievable today with the right natural resources and political will. The rapid growth of renewables worldwide is a hopeful sign that the clean energy transition is underway.