Marine Cable from Iceland to Scotland? Skip to content

Marine Cable from Iceland to Scotland?

The main producers of marine electric cables believe it is viable to establish such a cable from Iceland to Scotland. The cost would probably be considerably lower than what it cost to construct the Kárahnjúkar dam and industrial companies in Europe would pay up to four times the price which large-scale industrial companies in Iceland pay for energy.

Kárahnjúkar. Photo by Páll Stefánsson.

A marine cable transporting electricity from Iceland to the Faroe Islands has proven profitable. Therefore producers, including Siemens, are now looking into the possibility of a 935-kilometer long cable transporting electricity from Iceland to Scotland, RÚV reports.

The longest marine cable of this kind, which is 580 kilometers, connects Norway and the Netherlands. When the price of establishing that cable is taken into consideration, the Iceland-Scotland cable would clearly be expensive.

However, Ketill Sigurjónsson, an economist and specialist in energy affairs, still believes it is an economical option.

“When we consider the price of such a cable it would probably be sufficient for Iceland to sell the electricity for 40 mills to Europe to make it financially viable,” he reasoned.

According to a secret document which was leaked to the media recently, Nordurál – Century Aluminum pays 25 mills for energy. The average price for energy in Europe is around 70 mills. The industrial price for energy is around 100 mills.

The comparison with China, where a number of new aluminum smelters have been built in the past years, is rather bleak for Iceland.

“There the average price is around 50 to 60 mills […]. If the average price is 25 mills in Iceland I would say there is something wrong with the agreements that were made,” Sigurjónsson commented.

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