My Phd revolved around offshore windfarms. Many people think they are relatively benign to the environment but the reality is different. They have the potential to shift sediment and erosion, as well as affect currents in the right formation. Even small changes in the flora and fauna can affect migration and spawning patterns. At the end of the day all energy sources, even green energies, come at an environmental cost and we just have to weigh up which is the worse. Iceland is a poor model to use given that it has a population around 300,000 and it is easy to locate its centres near the sources.
Iceland also uses what it has locally available: geothermal energy. If I am not mistaken the houses on Iceland aren't even wood, because there was so little wood?