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Sustainable energy development is a complex and global policy objective. What needs to be emphasized to reach the objective, varies based on context corresponding to different energy-related challenges. A robust set of context-specific indicators is needed to measure progress towards sustainable energy development. Sustainability indicators enable the monitoring of progress towards policy goals and can inform actions and decision-making. Indicators often reflect the critical issues or challenges that lie ahead. In this study, an iterative stakeholder approach to indicator development is implemented within Iceland. The approach highlights the importance of stakeholder engagement for indicator selection and that indicators need to be context specific. The product of this is a set of indicators for sustainable energy development of the Icelandic energy system. These indicators, based on stakeholder input, reflect national priorities for energy development. Multiple products with policy implications come out of the process; indicators, analysis of stakeholders and their views, a definition of sustainable energy development in the context, a roadmap towards it, and identification of linkages between indicators. Thus, the process can provide a base for energy policy, an action plan towards sustainable energy development that is supported by stakeholders.

Sustainable energy development has become an international policy objective and an integral part of sustainable development. It is necessary to develop a robust and comprehensive set of indicators to monitor progress towards sustainable energy development. This analysis aimed to assess established indicator sets for sustainable energy development. The characteristics of a comprehensive and robust indicator set were identified to enable such an assessment and used as a basis for six assessment criteria; transparency of indicator selection and indicator application, conceptual framework, representative, linkages, and stakeholder engagement. A total of 57 indicator sets were found that monitor progress towards sustainable energy development or some aspects of it. All but one of these indicator sets were found to be lacking in some aspect, especially regarding a lack of transparency and consideration of linkages between indicators, presentation of an imbalanced picture, and no involvement of stakeholders during indicator development. The only indicator set that met all criteria were Energy Indicators for Sustainable Development developed jointly by multiple international agencies. Nonetheless, several flaws in this set were identified. The Energy Indicators for Sustainable Development could be considered as an initial basket of indicators for further refinement in the context where they will be applied to ensure their policy relevance and usefulness. The refinement process would benefit from more stakeholder input to take into account the specific context and make sure that there is a balance in the representation of the three dimensions of sustainable development.