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High Quality Content by WIKIPEDIA articles! About 81 per cent of total primary energy supply in Iceland is derived from domestically-produced renewable energy sources. In 2007, geothermal energy provided about 66 per cent of primary energy, the share of hydro power was 15 per cent, and fossil fuels (mainly oil) 19 per cent. The main use of geothermal energy is for space heating with the heat being distributed to buildings through extensive district-heating systems. About 85% of all houses in Iceland are heated with geothermal energy.