Energy

Environmentally Friendly Energy

North-east Iceland offers great possibilities for industrial growth in energy consuming industries and the area boasts several power stations, both geothermal and hydroelectric. When selecting a suitable location in Iceland, care has to be taken to look at other energy sources than electricity, because in addition to electricity the area offers energy in the form of geothermal steam or hot water exceeding 100ºC.

Research is also being conducted in high-temperature areas throughout the region for the purpose of increasing geothermal electricity production in the immediate future. Prime quality cold water is available, which in every respect satisfies the strictest requirements made in modern food service industries. All these options are open to interested investors abroad.  There are several preferable un-harnessed energy resources, both hydropower as well as geothermal resources, relatilvely close to the sites in Eyjafjordur which could serve as power plants.  

In addition to the resources mentioned above energy projects in northeast Iceland constitute part of the countrywide power grid, so that reliable delivery of electricity to the consumer is secured.

Electricity production in Iceland is environmentally friendly, a feature that renders it unique. In a world increasingly exposed to pollution, it is extremely important to reduce as much as possible the damage caused by the traditional CO2-emitting methods of electricity production. Icelandic ingenuity in the utilisation of geothermal energy and hydroelectric power projects is a significant contribution to reduced global pollution.

Most of the electrical energy is transmitted trough the regional transmission lines.  They have a voltage of 132 kV.  If heavy industry were to be built in Eyjafjordur the transmission system would have to be reinforced in such a way that at least two 220 kV transmission lines would supply powert to the site. 

The common procedure for Landsvirkjun (LV),the National Power Company, is to deliver the power, at the customers switchyard, which means that the customer will have to own and operate the switchyard at the factory.  LV produces around 85% of all Iceland´s electricity, which is totally 8.028 GWh, and owns and operates the national power grids.   According to the National Energy Authority, only 10-15% of the technically feasible hydropower has been harnessed, and only a fraction of the geothermal potential available for electricity production.  

The contract price can be negotiated as a long-term price (up to 20 years), if it is linked to some officially registered index or quotation that keeps it ’s real term value during the contract period.