How are most homes in factories Iceland heated and powered?

Most homes in Iceland are heated and powered by geothermal energy. Iceland is situated on the Mid-Atlantic Ridge, where the North American and Eurasian tectonic plates are pulling apart. This creates a lot of volcanic activity, which in turn heats the water underground. The hot water is then used to generate electricity and heat homes through district heating systems. In fact, over 90% of the homes in Iceland are heated using geothermal energy.