The use of geothermal energy is an important part of everyday life in modern Iceland. Publicly run district heating systems were introduced in the 1930s and currently more than nine out of ten households use geothermal energy for space heating. In addition to space heating, geothermal water was also used in swimming pools, for snow melting, and in greenhouses. However, at the turn of the century the utilization of geothermal energy took a different and more controversial turn. Geothermal resources were increasingly being exploited, partly by private firms, to generate electricity on a large scale for use in heavy industry. The government has initiated policy processes at the national level to reach consensus about using geothermal resources to produce electricity on a large scale. Despite increasing stakeholder engagement, and attempts to link the development to climate goals, a resolution has yet to be reached.