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Not just lamps. They use the electricity to power aluminium smelters (a very energy-intensive thing).

They do, and that is why the price of electricity is some of the lowest in the world.

Also - some sidewalks and parking spaces have heating - so the snow/ice melts! Amazing.

Source: Lived there for 4 years.

We do, and some folks even think it is economical to lay a sea bed power cable to the UK to sell some of it off. Most of the electricity is exported already in the form of aluminum.

Whether or not to keep building hydro power plants is one of the most controversial political topics in Iceland, and a strong differentiator between the agendas of different parties.

They do. They have lots of geothermal power plants all over the country.

> If they have such cheap power (nearly free minus maintenance and capital) from hydrothermal - why can't they convert it to electricity to power lamps?

There's no need to. They have lava lamps.