Geothermal energy is used for heating all the houses there plus electricity production.
In many places hot springs can be found the biggest fields being on Reykjanes peninsula not far from Keflavik airport. Then there is The Blue Lagoon, a natural hot lake with swimming facilities and believed to have healing powers, especially for skin diseases. The peninsula itself is evidence of intense volcanic activity as it is covered with lava that has flowed from the many volcanoes in the area.