The time to act is now
Landsvirkjun delivered a strong performance in 2024 despite falling short of the record-breaking results of the previous year. The year presented significant challenges, including historically low water reserves, which impacted sales and reduced revenues. In addition, changes to the pricing structure of a major customer contract and a decline in realised hedging gains contributed to lower earnings.
Yet, given these conditions, our performance was more than satisfactory. Landsvirkjun’s financial position is stronger than ever, providing us with the foundation to drive the energy developments essential for Iceland’s future.
As the nation’s leading energy Company, we have a clear mandate to maximise the value of Iceland’s renewable energy resources, guided by the principles of sustainability and efficiency.
With this responsibility comes an obligation to operate our power stations and energy systems with the utmost care and accountability. We must also generate more energy. We need to anticipate and secure access to affordable, reliable energy that supports economic growth, enhances quality of life, and aids the transition from fossil fuels.
However, we are unable to fulfil this duty as we should. For years, we have stressed the need to accelerate energy development, yet progress has been hindered by an overly complex and bureaucratic regulatory framework. Less supply means higher prices, limiting opportunities for businesses and households. This is a challenge of our own making, and we must act swiftly to remove the barriers preventing Iceland from fully harnessing its renewable potential. The reality is that we cannot afford to wait.
This annual report offers a detailed account of Landsvirkjun’s activities in 2024. It also serves as our progress report on the United Nations Global Compact (UNGC) commitments, reaffirming our unwavering dedication to the UN Sustainable Development Goals and its ten principles.
We remain committed to these principles.