National Power Company to Up Its Game Skip to content

National Power Company to Up Its Game

Landsvirkjun, the national power company, will place more emphasis on profitable operations than on power plant construction in the coming decades. According to the company’s strategy, the revenue paid to the state will increase five-fold in 20 years.

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A hydropower plant. Photo by Páll Stefánsson.

Landsvirkjun has been a disputed company for some time because people have been in disagreement regarding its energy decisions, ruv.is.

The board of Landsvirkjun decided at its general meeting this week that the company’s policy should contribute to reconciliation in society regarding its operations. Last week an open meeting was held on its future vision.

At the meeting Landsvirkjun CEO Hördur Arnarson said that the country’s energy resources are more limited than people once believed. The company is now planning to place increased emphasis on creating revenue from the already existing power plants.

Until now the company has been more driven by execution, which was natural at the time, but new circumstances offer new possibilities.

However, Landsvirkjun will not give up on power plant construction completely, Arnarson said. “We will of course continue with that based on the government’s policy but it is clear that it will not take up as large a part of the company’s operations as it used to.”

Arnarson added the goal is to increase the price of electricity to large-scale industrial companies in line with price development in Europe, which will return higher yields. Landsvirkjun must continue to be able to compete with other countries, though.

The profits in the coming years will be used for down payments of the company’s loans and to increase its credit rating, which is currently in the junk category.

After around four years Landsvirkjun should be prepared to start paying the state increased taxes and proceeds.

According to Arnarson, the payment ability should grow five-fold in the next 20 years, from USD 250 million this year to 1.3 billion (ISK 27 billion to 145 billion, EUR 181 million to 940 million) in 2030.

Click here to read more about Landsvirkjun.

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