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Competitively Priced Green Energy

Iceland is the only country in Western Europe that still has considerable resources of competitively priced, renewable energy remaining to be harnessed. 

Iceland has rich resources of hydroelectric and geothermal energy, which are responsibly and renewably harnessed to provide electrical power, space heating, hot water and steam for industrial, commercial and domestic use.

Iceland’s energy infrastructure ranks number 1 in Europe according to IMD’s World competitiveness yearbook 2014 for reliability, efficiency and cost.

Iceland offers long-term energy contracts, as well as enabling companies to cut cost and minimize their carbon footprint. Scalable locations are available with advanced infrastructure.

Hydro Power

Natural conditions in Iceland favor the use of hydroelectric installations for the generation of electricity.

In 2014, the installed capacity was 1.986 MW, generating 72% of the country’s electricity production. The largest single hydropower plant has a capacity of 690MW.

Bellow is a map of Hydro power plants in Iceland:

Source: National Energy Authority

Geothermal Energy

Geothermal energy is used for domestic and industrial purposes.

Over 85% of the population enjoys central heating using geothermal energy at a price that is less than half the cost of oil or electric heating. 

Geothermal steam is used directly for a number of industrial processing applications.

Bellow is a figure showing the development from 1970-2013 in geothermal energy:

Source: National Energy Authority

 

A modern, efficient national grid provides electricity to domestic and industrial users. Click on the picture below to see the current power live:

 

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, competitively priced 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, competitively priced 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

 

Market overview

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

Production

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.

 

For information regarding legislation on electricity in Iceland, see following links:

Get in touch

For further information on the benefits of establishing a business in Iceland please feel free to contact us.

Data centers in Iceland

Iceland has one of the world’s most reliable power infrastructures, renewable power sources, ideal climate for free cooling and offers long-term contracts and scalable locations.

Usage of renewable energy

Diversified Usage of Renewable Energy in Iceland
Extract from an analysis of alternative energy intensive sectors

Key Sectors

With high professional standards and the cooperation of major international banks and accounting companies, a large number of international investors have been establishing their business in a wide range of industries in the investor-friendly environment of Iceland