Energetic Iceland
Annual Report 2025
Strong Results in a Challenging Year
Landsvirkjun’s operations performed well in 2025, despite challenging conditions and some uncertainty in the operating environment. Emphasis was placed on the safe operation of power stations, responding to fluctuations in the water year, and preparing projects intended to meet society’s future energy needs.
The annual report reviews the main aspects of operations during the year, including power generation and operations, electricity markets and security of supply, climate and environmental matters, the workplace, construction projects and future developments, as well as communication with society, outreach and education.
A Time for Responsibility and Foresight
The year 2025 marked a milestone in the history of Landsvirkjun, as the Company celebrated its 60th anniversary. Important progress was made in the preparation and development of new power projects during this anniversary year. At the same time, it is clear that the Company - along with the government and the nation as a whole - faces decisions that call for clarity of vision and a strong sense of responsibility.
Cost-Effective Energy Development Is Key to Competitiveness
Landsvirkjun delivered a strong performance in 2025, despite challenging conditions and fluctuations in the external environment. The results reflect a solid core operation and a strong financial position. This strength is particularly important at a time when clear decisions are needed regarding the next steps in energy development for Icelandic society.
Key Figures
Electricity generation
0TWh5%Profit before unrealised financial items
$0m5%Avoided emissions from electricity generation
0m. tonnes0.1%CO2 -eq
Emissions from power generation per unit of energy
0g4.6%CO2-eq/kWh
Total assets
$0m3%Net debt
$0m1%
About the Company
A Beginning That Marked a Turning Point
Hörður Arnarson, CEO, and Kristín Linda Árnadóttir, Executive Vice President, tell the story of Landsvirkjun as one intertwined with the development of Icelandic society.
They describe what characterises Landsvirkjun as a company owned by the nation: its role in Icelandic society, the responsibility that comes with utilising renewable resources, and the long-term thinking, professionalism and trust that guide its employees.
Professionalism, Trust and Opportunities to Grow
Landsvirkjun is a knowledge-based company with a clear purpose and a strong identity. Its employees bring deep expertise and ambition to their work, in an environment that emphasises wellbeing, safety, and balance.
Sveina Berglind Jónsdóttir, Chief Human Resources Officer, describes Landsvirkjun as a workplace where people work together on challenging and rewarding projects, feel well at work and are given room to grow and develop.
An Energy Company Owned by the Nation
Landsvirkjun at a Glance
Landsvirkjun is an energy company owned by the Icelandic nation and generates electricity from renewable energy sources: hydropower, geothermal energy and wind. The Company produces more than 70% of all electricity generated in Iceland and supplies it to industry, services and households.
Landsvirkjun operates 14 hydropower stations, three geothermal power stations and two research wind turbines, across five operating areas throughout the country. Its headquarters are in Reykjavík.
Preparations and construction are under way for new power plants and the expansion of existing stations to meet growing energy demand and support the energy transition.
Landsvirkjun is a public partnership owned by the Icelandic State. The Company’s vision is a sustainable world powered by renewable energy, and its role is to maximise the value of the renewable energy resources entrusted to it, guided by sustainability and efficiency.