Energy based industries
Akureyri region is a powerful place, referring to the plentiful of inexpensive and clean energy in the area. Iceland and especially N-Iceland has many untapped energy resources that are environmental friendly like geothermal power and hydroelectricity power. There are many untapped resources in Northern Iceland that will continue in the future to keep the energy cost in the Akureyri area one of the lowest in Europe.
Akureyri region is an excellent location for power intensive processes. An energy charge is to be negotiated within the range of 2,0 ? 2,5 US cents/kWh, based on the reliability of the power supply and on the assumption that there will be an energy take of more than 100 GWh/year with a utilization of 8000 hours or more. If the customer can accept part of the power supply as secondary power, the price may be substantially lower. The bulk of the electric power in Iceland is sold as primary energy from a system dominated by hydroelectric sources. That means that it is delivered any time when the customer needs it at high security rate. Due to the variation in river flows, customers in the Icelandic power system can negotiate to take out a certain amount of the total energy as secondary energy. The secondary energy is sold at a lower rate than the primary energy but the delivery is only guaranteed up to a certain minimum amount. Thus power intensive industries, which have a certain flexibility to reduce consumption during dry spells, can find it beneficial to take a part of the power at a lower price in the form of secondary energy.
The power companies are willing to negotiate a long-term contract over app. 20 years, based on the assumption that the power price will be linked to some officially registered variable, such as a price production index or similar.
Links from the region on energy matters
National Power Company
Nordurorka
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