9. June 2004

One-third of energy potential harnessed in 2010
Plenty of power left for future projects

Since 1995 we have seen energy sales to the power intensive industry more than double. Currently this industry utilises more than two-thirds of all electricity produced in Iceland, which is now close to 8.5 Tera Watt hours per year. When the projects now in the pipeline come on stream, the electricity supply to the power intensive industry will increase up to 80% of the total electricity production which in 2010 is estimated to reach 15.5 Tera Watt hours per year. Yet, this is only about one-third of the total electrical power potential, which can be harnessed economically and in reasonable harmony with the environment. Consequently, there is still plenty of power left to be developed for the benefit of future power intensive industry projects.

Experience from other countries has shown that it is not enough to be able to offer power at attractive rates. We need more and Iceland offers a number of other attractions:

The strategic location that Iceland has vis-a-vis the markets on both sides of the North Atlantic, USA and Europe, with only 3 days sailing time to the North Sea ports, is an asset. We also have a well-educated and highly skilled labour force and we are member of the European Economic Area (EEA), which means that the basic European Union freedoms of free movement of goods, services, labour and capital apply to Iceland. We are proud of our record as far as economic and political stability is concerned and the low corporate tax rate of only 18% demonstrates that the Government is not so hungry for your tax money.

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