Iceland's unique natural resources make it the best choice for energy dependent industries.
No other country in the world offers as competitively priced, renewable energy via long-term contracts on such a scale:
- Energy potential: up to two-thirds of the country's energy potential remains untapped
- Competitive and environmentally friendly: Iceland's competitively priced energy is based on sustainable hydro and geothermal power
- Quality energy infrastructure: Iceland has one of the highest ranking energy infrastructures in the world
Reasons to choose Iceland:
Rich, untapped natural resources
- Iceland is the only country in Western Europe that still offers extensive resources of competitively priced, renewable energy.
- According to the Icelandic Master Plan for Hydro and Geothermal Energy Resources an increase of 9.2 TWh is possible in the near future and potential of further 11.8 TWh.
And there's more to come…
- In the near future there are plans to harvest geothermal steam with a pressure of up to 20 bar and temperatures of up to 250°C, offering incredible benefits to steam, and electricity dependent industries.
- See more at: IDDP
Sustainable, low cost power
- Iceland's uniquely sustainable electricity generating capacity is based on hydropower and geothermal energy.
- These environmentally friendly, green resources produce electricity with very little atmospheric emissions, especially when compared to fossil fuels.
- 100% of the electricity on the grid derives from hydro and geothermal resources, with no use of fossil fuels or nuclear energy.
A state-of-the-art power infrastructure
- Iceland has one of world's highest ranked power infrastructures for reliability, efficiency and cost.
Excellent economic advantages
- Long-term, low-cost power
- Skilled labour
- Experienced management services
- Favourable exchange rates
- Tax incentives
- Investment discounts
Benefits for the aluminium industry
- Iceland's resources have provided excellent results for the aluminium industry –from the first smelter in the 1960s to more recent developments by companies such as Alcoa and RioTinto Alcan.
- Using electricity generated by hydropower has enabled producers to cut their CO2 emissions by up to 90% per ton compared with coal-fired power stations.
The Icelandic Electricity Market
100% green energy
State of the art transmission grid Competition in production and supply Licensed and regulated transmission and distribution
Long-term, fixed-price contracts available
Power intensive companies are 80% of the market
The Icelandic electricity market is a deregulated market where most of the energy on the 100% renewable grid is sold to power-intensive users. Production and supply are subject to the laws of competition while transmission and distribution are licensed and regulated. Regulations are based on EU directives, implemented in Iceland
Three producers generate more than 95% of Iceland’s electricity, with Landsvirkjun – National Power Company of Iceland, generating over 70%. Nearly 73% of the electricity in Iceland is generated harnessing hydro power, over 27% harnessing geothermal power and 0.1% harnessing wind power.
Transmission and Distribution
Transmisson and distribution is subject to concession and regulation. Landsnet owns and operates the transmission grid, the control centre and all major substations. Six regional distribution companies operate networks that serve all homes and companies in Iceland except the power intensive customers.
Dual Electricity Markets
Power intensive industries buy around 80% of the electricity generated. Customers requiring 10MW or more of installed power (within three years) are defined as power intensive and connect directly to the transmission grid. The remaining 20% are distributed by six electricity retail companies to retail clients (homes and companies) all over Iceland via six distribution networks.