Björk’s Biophilia is a five-headed organism: the album (itself issued in five different editions), the app, the documentary, the live show and the website. Here in Harpa, Reykjavík’s spanking-new concert hall, Björk is in her home town, delivering the live show, performing the music. She’s playing residencies rather than touring. Instruments have been specially made. A giant spark arcs between two Tesla coils. Four massive pendulums swing.

After three days' motoring and clambering around the most awesome natural landscapes I've ever seen, how could a mere concert hall in a city the size of Cambridge begin to compare?

Ólafur Arnalds used to drum for a hardcore band called Fighting Shit. But since 2007 he’s produced a string of achingly emotive CDs that integrate sparse piano, keening strings and subtle electronic texture. He’s Icelandic and, inevitably, his instrumental music is usually described as evoking empty landscapes and long stretches of darkness. But judging by last night's concert, his sunny outlook, affability and humour cut dead all thoughts of dark nights of the soul feeding his muse.

Certain Nordic countries are identified with particular forms of music. Norway and Finland are the home to various strands of metal. Sweden’s pop songwriters and producers are world-renowned, attracting the likes of Britney Spears to Scandinavia. Iceland homes individualists like Björk and Sigur Rõs. Denmark’s influential Mew and Efterklang capture mood like no one else. But you won’t find any of this on the new three-CD set Beginner's Guide to Scandinavia.

Even taking into account Britain's currently insatiable appetite for the literary, cinematic and televisual output of our Nordic friends, the notion of an “award-winning Icelandic comedy” still sounds a little like one of those lame gags designed to play upon a nation's reputation for batting above average in the international suicide stakes. The pedigree of The Night Shift , however, is no joke. Sadly, it transpired last night that its contents were also no laughing matter.

Pål Moddi Knutsen is from Senja, an island off north Norway’s west coast. Inside the Arctic Circle, it’s so far north as to be all but adjacent to the borders with Sweden and Finland. Due east, Murmansk is less than half the distance of Oslo. It’s no surprise that Moddi’s debut album evokes solitude, the endless light, the unbroken night and the contemplation that has to come with the territory.

Oslo’s annual by:Larm festival celebrates Nordic music. Over the three days, just under 180 acts play Norway's capital: 142 are Norwegian, 15 are Swedish, with single figures each for Iceland, Denmark, Finland and even Greenland. Time presses, and hard choices have to be made about what to see. This year, by:Larm also hosted the inaugural Nordic Music Prize, awarded to Iceland’s Jõnsi, for his recent album Go. Overjoyed, but overwhelmed, in reaction he said little more than, “Thank you so much, I’m really bad at this.”

There’s a moment during Hjaltalín’s encore when bolero rhythms take over and you wonder if the Reykjavik septet have invented a new musical hybrid: a Ravel-driven makeover of Seventies-slanted soul. As singer Sigrídur Thorlacius lets rip on the thrillingly anthemic “Feels Like Sugar”, it’s clear that Hjaltalín aren’t bothered with current musical templates. They take from the unlikeliest sources, smoosh them together and end up sounding like no one else. After all, this is a band with a stand-up bassoon player.

This month's top releases are headed up by a brilliant covers album by Brazilian singer Seu Jorge, and the Manic Street Preachers and Richard Thompson on peak form. Elsewhere there is South African pianist Kyle Shepherd, Argentinian "eccentric mystic" Axel Krygier and dance music from Underworld and Superpitcher and "like a Humberside Randy Newman" Paul Heaton. Reviewers are Sue Steward, Joe Muggs, Russ Coffey, Peter Culshaw, Kieron Tyler, Marcus O'Dair, Bruce Dessau and Howard Male.

Last year’s Vid og Vid (an Icelandic colloquialism for "every now and then"), Ólöf Arnalds’ debut album, attracted some high-profile fans. Fellow Icelander Björk raised the flag on America’s National Public Radio, as did Jonathan Richman who requested that she open the shows during his San Francisco residency last week. Björk has contributed vocals to "Surrender", a cut from Arnalds’ forthcoming album Innundor Skinni (Within the Skin).