The Iceland Nature Conservation Association claims that the National Power Company will incur a loss of between ISK 20-30 billion through its investment in the Kárahnjúkavirkjun dam project in east Iceland. The calculations are based on figures released by the National Power Company in a reviewed profitability assessment for the dam. Morgunbladid online reports.
In a press release, the Iceland Nature Conservation Association states that it has often “criticized the negative rate of return of the Kárahnjúkavirkjun dam and in particular how low the requirements by the National Power Company (the owners) are for its investment to return a profit”.
The Iceland Nature Conservation Association bases its calculations on the Weighted Average Cost of Capital being 8-9 percent, as is considered “normal and natural based on market criteria.”