Iceland's precipitation combined with extensive highlands, has an enormous energy potential or up to 220 TWh/yr. Of the primary energy consumption in Iceland, in 2008, 20% was generated from hydropower. The total electricity production was in 2008, 12,5 TWh from hydro.
Much of the precipitation is stored in ice caps and groundwater, and dissipated by evaporation, groundwater flow and glacier flow. In 2008 Iceland had hydroelectric power stations with a total installed capacity of 1.880 MW, generating 75,5% of the country's electricity production.