Iceland's precipitation combined with extensive highlands, has an enormous energy potential or up to 220 TWh/yr. Of the primary energy use in Iceland, in 2014, 20% was generated from hydropower. The total electricity production was in 2014, 12,9 TWh from hydro.
Much of the precipitation is stored in ice caps and groundwater, and dissipated by evaporation, groundwater flow and glacier flow. In 2014 Iceland had hydroelectric power stations with a total installed capacity of 1.986 MW, generating 72% of the country's electricity production.