Hér er fjallað um starfsemi Landsvirkjunar á árinu 2025, þar sem reyndi á rekstur, áætlanir og viðbrögð fyrirtækisins við krefjandi aðstæðum. 

Farið er yfir helstu þætti í rekstri orkukerfisins, fjármál, framkvæmdir, sölu og þjónustu, sem og samskipti við viðskiptavini og samfélagið. 

LV_AnnualReport_2025_V9.pdf

LV_SustainabilityStatement_2025.pdf

Landsvirkjun's Climate Accounts 2025.pdf

Financial statements Landsvirkjun 2025.pdf

Landsvirkjun’s operations performed well in 2025, despite challenging conditions and some uncertainty in the operating environment. 

Hörður Arnarson, CEO, and Kristín Linda Árnadóttir, Deputy CEO, describe a company whose history is closely intertwined with Iceland’s development.

Landsvirkjun is a publicly owned energy company, and its establishment in 1965 has had far-reaching impacts on industry, economic development, and living standards in Iceland to this day.

Sveina Berglind Jónsdóttir, Chief Human Resources Officer, tells us about Landsvirkjun as a workplace. Click the video to watch the interview.

The workplace at Landsvirkjun is characterised by a strong team spirit and continuous development. Its employees are passionate about their work and bring deep expertise and ambition to their roles. The fundamental principle is that people should feel well and safe at work.

Professionalism, Trust and Opportunities to Grow

Sveina Berglind Jónsdóttir, Chief Human Resources Officer, tells us about Landsvirkjun as a workplace. 

What is it like to work at Landsvirkjun? | Annual report 2025

Gunnar Guðni Tómasson, Executive Vice President of Hydropower, reviews operations in 2025.

Operations at the hydropower stations were stable during the year, although the system was nevertheless tested, not least due to outages in the Þjórsá area and fluctuations in water conditions, which ultimately proved favourable.

"We Set High Standards as the System Must Deliver"

Hydropower Operations and the Water Year | Annual Report 2025

Georg Þór Pálsson, Station Manager in the Þjórsá area, faced significant challenges in 2025.

The operation of hydropower stations in the Þjórsá area proved unusually demanding during the year. Extensive maintenance at Þórisvatn, an unexpected leak at Vatnsfell Power Station, and increased water inflow in the catchment area occurred at roughly the same time.

A Challenging Year with Several Issues Unfolding at Once

Operational challenges in the Þjórsá area

Operational challenges in the Þjórsá area | Annual Report 2025

Guðlaugur Þórarinsson, a specialist in hydropower development, had to step up significantly in late summer 2025.

An unexpected incident occurred over the August bank holiday weekend, when a crack and leak were discovered in the slope above the powerhouse at Vatnsfell Power Station. What is normally dry ground had turned into a stream channel, which had washed down silt and sand.

An Unexpected Discovery During an Inspection Tour

Leak at Vatnsfell Hydropower Station | Annual Report 2025

Bjarni Pálsson, Executive Vice President of Wind and Geothermal, tells us about the operation of geothermal power stations in 2025.

Geothermal power stations played a key role when the load on the power system was at its highest in the first half of the year and the hydrological situation was tight. Operations ran very well during the year, and generation amounted to just over 8% of the Company’s total output.

“Geothermal stood up to heavy loads under great strain”

Operations of geothermal power stations | Annual Report 2025

Anette K. Mortensen, a specialist in geothermal development and resources, tells us about the resource in the north.

The operation of geothermal power stations in Northeast Iceland is an important pillar of Landsvirkjun’s activities. The steam station at Bjarnarflag is the oldest geothermal power station in Iceland, Krafla Power Station is the nation’s first large-scale geothermal plant, and Þeistareykir Power Station is the first geothermal station built by Landsvirkjun from the ground up.

“Ideal conditions for robust and sustainable utilisation”

The geothermal resource in Northeast Iceland

The geothermal resource in Northeast Iceland | Annual Report  2025

Vordís Sörensen Eiríksdóttir, Head of Wind Energy, says that the construction of the Vaðalda wind farm marks a milestone in Iceland’s energy history.

The utilisation of wind energy in Iceland holds strong promise, as winds blow frequently here throughout most of the year. The energy source fits well into Landsvirkjun’s generation system, as wind conditions are typically strongest in winter, when reservoir levels are lower.

“Wind can become the third pillar of the electricity system”

Iceland’s wind energy resource | Annual Report 2025

Ragnar Guðmannsson, Head of the Control Centre, tells us about the new control centre that became operational in 2025.

The development of the control centre was a major project, completed late in the year. Landsvirkjun had not operated its own control centre for several years following the restructuring of the company and the establishment of Landsnet. Commissioning went well, and operations have run smoothly.

The Control Centre Is the Heart of Operations

Landsvirkjun’s Control Centre | Annual Report 2025

Selma Svavarsdóttir, Director of Improvement and Safety, outlines Landsvirkjun’s work in safety.

Safety is an integral part of the Company’s operations, as employees work in conditions that can pose risks if not approached with due care. Among other measures, we have established life-saving rules designed to reduce the likelihood of serious accidents.

“No Task Is More Important Than Our Lives and Health”

Rafnar Lárusson, Executive Vice President of Finance and Information Technology, reviews the Company’s 2025 financial results and financial position.

Financial performance for the year was strong, with solid revenues and an equity position at year-end comparable to its best levels. The Company is very well positioned to undertake the developments now beginning, aimed at supporting a growing society and economy.

Financial Performance | Annual Report 2025

Karen Bjarney Jóhannsdóttir, Head of Treasury, explains the Company’s financing.

To finance its projects and investments, Landsvirkjun issues bonds. There is a strong emphasis on sustainable financing, which means considering not only financial returns, but also environmental and social factors, as well as good governance.

“We Have Financed Ourselves Sustainably Since 2018”

Ásbjörg Kristinsdóttir, Executive Vice President of Construction, reviews the projects that have started and those in the pipeline.

The largest construction period in Landsvirkjun’s history has begun, with the year marking a milestone following a long and demanding preparation phase. Ahead are key projects that will strengthen the power system for the future and meet growing demand from households and industry.

“We Are Beginning One of the Largest Construction Periods in Landsvirkjun’s History”

Forthcoming Construction Projects | Annual Report 2025

Ólöf Rós Káradóttir, Project Manager in New Construction, tells us about the construction of Hvammur Power Station.

Hvammur Power Station will be the eighth hydropower plant in the Þjórsá and Tungnaá area. It is highly cost-effective, not least because it makes use of infrastructure already in place in the area and connected to the existing hydropower stations.

Cost-Effective Project in a Populated Area

Hvammur Power Station | Annual Report 2025

Elín Hallgrímsdóttir, Project Manager in New Developments, tells us about the construction and current status of the Vaðalda Wind Farm.

The area at Vaðalda is well suited for wind power utilisation, and the country’s first wind farm is now being built there. The project is large and complex and is based on many years of preparation, with major transport operations of the wind turbines to the site among the key tasks ahead.

“We Are Building The Country’s First Wind Farm”

Kristján Gerhard, Project Manager in Improvements, tells us about the expansion of Sigalda.

Sigalda Power Station was designed from the outset to allow for the easy addition of a fourth turbine, making the expansion particularly cost-effective. This means the project causes minimal disturbance to the environment and to existing structures.

Increased Capacity With Minimal Disturbance

Extension of Sigalda Power Station | Annual Report 2025

Jón Smári Úlfarsson, Project Manager in New Construction, has worked on a number of power plant projects.

A great deal of knowledge has been built up within Landsvirkjun over the six decades in which the company has developed hydropower and geothermal projects. A key aspect of operating an energy company is preserving the specialist knowledge that employees accumulate over time.

“Knowledge Is Not Created in a Single Project, It Accumulates”

How do we preserve Specialist Knowledge? | Annual Report 2025

Jónas Hlynur Hallgrímsson, Head of Market Analysis and Market Development, discusses electricity trading during the year.

Prices declined in the domestic electricity market in spring and again in autumn, when demand contracted. Internationally, the trend was different, with electricity prices generally rising by around 10% over the year, although the increase varied between markets.

Markets Taking Shape: Greater Visibility and Predictability

Valur Ægisson, Head of Account Management, discusses the performance of customers during the year.

Major fluctuations in international commodity markets affected the performance of Landsvirkjun’s largest customers during the year. They all operate in global markets and are directly exposed to the volatility that characterises both those markets and the broader international economic environment.

The Success of Large Power Users Matters to Society

Tinna Traustadóttir, Executive Vice President of Sales and Services, outlines the structure of electricity trading in Iceland and internationally.

Most of the electricity generated in Iceland is sold under long-term contracts, which are a cornerstone of operations for Landsvirkjun and its largest customers. Trading also takes place on two new platforms, Vonarskarð and Elma.

Electricity Markets and Security of Supply

Electricity Markets and Security of Supply | Annual Report 2025

Þóra Arnórsdóttir, Head of Communications and Information, discusses communication with the Company’s owner.

Landsvirkjun is owned by the Icelandic nation and operates with the public interest as its guiding principle. This entails a strong obligation to ensure transparency and the communication of information, so that the owners have access to the information that matters.

“The Target Group Is Just One: The Icelandic Nation”

Þóra Arnórsdóttir, Director of Communications and Public Information, discusses communication with the Company’s owner.

Gunnar Aron Ólason, Communications Officer for New Construction, discusses communication relating to the Company’s construction projects.

Clear and regular communication is of key importance for people in communities near power development projects. It is important to ensure two-way dialogue and the flow of information between the company and those who live and work in the area, so that people can respond to changes in their daily lives.

“Trust Is Built by Being Present and Engaging in Dialogue”

Communication regarding new construction | Annual Report 2025

This section covers Landsvirkjun’s operations in 2025, a year that tested the Company’s operations, planning, and ability to respond to challenging conditions.

It reviews the main aspects of the power system’s operation, finance, construction, sales and services, as well as relations with customers and the wider community.

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