In October 2009, steps were taken to establish an energy cluster in Iceland. The mapping of the cluster was supported by a diverse group of companies and conducted by Professor Michael Porter and his team at Harvard Business School, US, and coordinated by the Icelandic consultancy company. The output of the mapping process was a recommendation for an optimal path to strengthen the infrastructure within the geothermal sector in Iceland by formalising a cluster initiative. Since that time the scope of the cluster has been expanded to all nonrenewable technologies in Iceland. The main aim of the cluster is:

• Support innovation by; creation of startups and driving research and development.
• Protect and strengthen the image of Iceland as the land of renewable energy resources.
• Improve value creation, competence and capabilities of its members.
• Drive development and export of specialised products and services as protect intellectual property.
• Expand the business network of its members; increase information flow between the energy sector, government and society. 

The energy cluster objective is to increase cooperativeness of its members

The cluster has from the begging had closed collaboration with the Icelandic Government, its ministries and agencies. To day the cluster is part of a joint effort by Icelandic industries and Government to promote Icelands contribution to combat climate change. Additionally the cluster and selected ministries have a formal platform to discuss the the development of the energy sector and international challenges.