Landsvirkjun intends to allocate approximately ISK 12 billion to completing various new projects, refurbishments and maintenance work in energy production areas over the next three years. The Company will also provide temporary discounts on electricity prices to its energy-intensive customers in the amount of ISK 1.5 billion, cooperate with local stakeholders to prepare research and development projects in the South and North of Iceland and expedite digital development projects. Landsvirkjun recently announced that it would double its dividend payments to the StateTreasury this year, in the amount of 10 billion.
Landsvirkjun is one of Iceland’s largest companies and we see this move as our contribution to reigniting the economy and employment sector after the negative impact of the COVID19 epidemic. We will continue taking the necessary steps to ensure the ongoing secure generation of energy at our power stations.
Landsvirkjun has already initiated or prepared various measures, in cooperation with numerous stakeholders. The objective of these measures is to create employment opportunities, profitable maintenance projects and investments and to promote energy-related innovation and value creation at the national level.
Landsvirkjun has decided to introduce the following measures:
“Iceland will need to release itself from the grip of COVID19 in the coming months and years, to compensate for the economic damage caused by the pandemic. Landsvirkjun intends to do everything in its power to ease the pressure on business owners. Landsvirkjun maintains a strong position and will continue providing secure electricity production from renewable energy sources and working towards achieving carbon neutrality in 2025. We will also implement various measures to support our customers in creating employment opportunities and promoting energy-related, climate-friendly innovation.”
Landsvirkjun’s most important responsibility is the secure production and supply of electricity to its customers, during the COVID19 crisis as well as ensuring the health and safety of its employees. Landsvirkjun produces 70% of Iceland’s electricity. The Company operates 15 hydropower stations, 3 geothermal stations and two wind turbines in five operational areas. Landsvirkjun’s electricity generation has continually fulfilled expectations.
Landsvirkjun has closely followed the Department of Civil Protection and Emergency Management’s recommendations from the onset of the epidemic and has chosen to go above and beyond the recommended precautions. The Company has focused on protecting the core business of the company. Strict safety rules have been implemented in all areas of operation by asking employees to work remotely and organising strict shift schedules for employees required to be on-site. Solid preparation work and clear working procedures have proved helpful.
Improvement and maintenance work has been temporarily delayed until the current situation improves. Power station operations have been protected as far as possible and no disturbances have occurred in the generation and supply of electricity, so far.
The demand for electricity has decreased worldwide as a result of the COVID19 pandemic. Many of Landsvirkjun’s customers have been affected by global market constraints and less demand for their products. Production demands have rapidly decreased and many markets have shut down completely. Consequently, some of our customers have been forced to cut- back on operations. Our data center customers remain positive about the future, despite the temporary reduction in demand and accompanying challenges.
Landsvirkjun will make every effort to work with each one of our customers and offer temporary solutions to support businesses, experiencing difficulties as a result of poor market conditions, during the COVID19 pandemic. We have proposed the following measures to support our customers:
Projects will be expedited and various employment opportunity and maintenance projects will be launched in the next three years, to the tune of ISK 12 billion.
Landsvirkjun carries out extensive maintenance and improvement projects every year, throughout its operations. We will provide ISK 2.4 billion to launch over 90 projects this year which will mostly be carried out this summer and the following autumn. Planned projects include the following:
We are also considering options to expedite various projects in the next three years. These include potential preparation projects for the Hvammur Project in Þjórsá e.g. road construction, bridge construction and facilities construction. These projects would begin in 2021.
We have decided to continue our support for the EIMUR Project, which is a collaboration project between Landsvirkjun, Norðurorka, Orkuveita Húsavíkur and the Association of municipalities and business development in the Northeast. Eimur has worked on a diverse range of projects in the last few years, including the mapping of natural resources within the region, research on potential innovative projects to improve energy utilisation, support for start-up businesses, and various university projects. Eimur has also been involved in international research projects.
We are currently launching a new collaborative project with the Association of Southern Local Authorities and the Agricultural University of Iceland. Project aims include support for innovation and development in the food production industry and biotechnology at the national level. Landsvirkjun will advertise for potential projects in the South Iceland business accelerator.
We are currently in the process of preparing new research and development projects with a particular emphasis on the green transformation of transport, domestic fuel production and the utilisation of by-products. Summer employment opportunities
We will continue to offer university, technical students and young people (16 to 20 years) summer employment. We hired sixty university and technical students this summer after receiving 530 applications. One hundred and sixty young adults, aged between 16 and 20 will begin their summer employment with us in June, all over the country, after the Company received 280 applications.