Iceland generates 100% of its electricity and heat from renewable sources, with 80% coming from hydropower and 20% from geothermal. Geothermal energy also heats most homes in Iceland. This low-cost renewable energy has attracted energy-intensive industries like aluminum production and Iceland is considering exporting excess electricity via undersea cables to other parts of Europe. However, transportation and some industries still rely on fossil fuels, resulting in high per capita carbon dioxide emissions despite Iceland's renewable energy.