Electricity Providers in Iceland

Iceland has a very robust energy sector, where almost 100% of electricity is generated from renewable sources such as hydropower and geothermal energy. Energy generated from geothermal sources accounts for the largest share. Per capita electricity generation in Iceland is almost ten times higher than in Europe. The average per capita electricity generation in Europe is around 6000 KWh, while in Iceland this figure is a whopping 55,000 KWh. In terms of consumption, the biggest consumers of electricity in Iceland are the country's aluminium smelters and other ferroalloy plants. The cost of electricity in Iceland is relatively low.

Three companies stand out among the Icelandic electricity suppliers: Landsvirkjun, OrkuveitaReykjavíkur / Orkanáttúrunnar and HS Orka. The first two belong to the public sector and are owned by the Icelandic government and municipalities respectively. The third, HS Orka, is a private company jointly owned by a Canadian company and Icelandic pension funds.

Landsvirkjun

The state-owned company Landsvirkjun is by far the largest electricity company in Iceland and is responsible for almost three quarters of the energy generated in the country. The company produces more hydropower than geothermal energy. Because it is a public company, it is in a better position to enter into long-term contracts for the supply of electricity to large consumers. The company also supplies electricity to the largest electricity distribution company, the Icelandic Transmission System Operator (TSO). This transmission company is also 65 owned by Landsvirkjun.

 Landsvirkjun is managed by a five-member board of directors appointed by the Icelandic government's Ministry of Finance. The company operates a total of 11 power plants that generate electricity from hydropower and two plants that generate geothermal energy. The utility is financially quite strong thanks to its contracts with the country's major electricity consumers.

OrkuveitaReykjavíkur / Orkanáttúrunnar

As the Icelandic name OrkuveitaReykjavíkur (OR) suggests, it is a utility company based in Reykjavik, owned and managed by the city of Reykjavik. The other company, Orkanáttúrunnar (ON), is a subsidiary of OR. Together, these two public utilities provide electricity and hot water to the inhabitants of the capital and its suburbs. It is known as the larger urban area of Reykjavik. In contrast to Landsvirkjun, a large part of the electricity generated by ON comes from geothermal energy sources. There are also two smaller plants that generate electricity from hydropower.

Together, the two companies supply the capital with cold and hot water as well as the sewage system. These companies were founded back in the 1940s.

HS Orka

The third player among the Icelandic electricity suppliers, HS Orka, is, as mentioned, the only private company. Interestingly, this company was also owned by the Icelandic state, but later disinvested. The largest shareholder is a Canadian company, Alterra Power. Some Icelandic pension funds have also invested in the company and own around a third of the shares. HS Orka only produces geothermal energy. However, the company has several subsidiaries that supply many areas of the country with hot water.

In addition to these three companies, there are several smaller Icelandic electricity companies, most of which are owned by the Icelandic government or local municipalities.

Although geothermal and hydropower are the mainstays of Iceland's electricity companies, there is plenty of potential for electricity generation from windmills, another form of renewable energy source. Some windmills are already in operation and producing electricity, but more will be heard of them in the coming years.

The easy availability of electricity at low cost is touted as a big plus point by those touting Iceland as an ideal investment destination.

If you have plans to come to Iceland and require local help of any kind, contact Swapp Agency .