The paper reviews geothermal electric power potential in Iceland which could economically be developed to supplement hydro power for (a) the proposed HVDC Power Link to the United Kingdom, and (b) power intensive industries in Iceland, which are envisaged for development at this time. Technically harnessable energy for electricity generation taking account of geothermal resources down to an assumed base depth, temperature distribution in the crust, probable geothermal recovery factor, and accessibility of the field, has been assessed. Nineteen known high-temperature fields and 9 probable fields have been identified. Technically harnessable geo-heat for various areas is indicated. Data on high temperature fields suitable for geothermal electric power generation, and on harnessable energy for electric power generation within volcanic zones, is stated, and overall assessments are made. The paper then reviews how the potential might be developed, discussing preference of possible sites, and cost of the developments at todays prices. Cost of geothermal electric power generation with comparative costs for hydro generation are given. Possible transmission system developments to feed the power to the proposed HVDC Link converter stations are also discussed.