MP Wants to Sell Power Plants to Private Parties Skip to content

MP Wants to Sell Power Plants to Private Parties

MP for the Social Democrats Helgi Hjörvar has proposed that state-run power plants be sold to private companies, including the country’s largest power plant at Kárahnjúkar in the eastern highlands.

“It would not be a permanent endorsement but the operation of Kárahnjúkar would be sold as a lease with agreements with Alcoa for 40 years and other plants for 20 to 30 years, depending on the circumstances, after which time the state would reclaim the plants for operation or for issuing a new lease,” Hjörvar writes in Morgunbladid today.

Hjörvar argues that his idea is based on an agreement between the government parties, Independence Party and the Social Democrats, that the country’s energy sources remain in public ownership while the power plants themselves can be privatized.

Hjörvar emphasizes in his article that Landsvirkjun, the National Power Company, should remain in control of power plants that produce electricity for the public and smaller companies, while those used for powering large-scale industrial companies should be privatized.

The MP said that while the state should secure the interest of the general public it does not make any sense for it to be involved in energy production for international metal companies.

Hjörvar reasons that the privatization of power plants could encourage further progression in the field of energy and the internationalization of Icelandic companies through participation of new investors and companies.

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