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Iceland in an advantageous position

November 23, 2012

The Annual Autumn Meeting was well attended this year. Over 400 guests were present at the meeting, held at the Hilton Nordica Hotel in Reykjavík.

In his address, Hörður Arnarson, CEO of Landsvirkjun commented that despite the worldwide financial crisis, Iceland is in fact in an advantageous position. Many international industrial companies have shown tremendous interest in Iceland and are eager to commence with a variety of projects, once the recession comes to a close.

Landsvirkjun has so far outlined and provisionally agreed to energy contracts with four international companies and is in the process of completing a number of other agreements. Current clients have also expressed an interest in expansion, once the recession comes to a close.

Hörður Arnarson also stated that Landsvirkjun’s policies are based upon an established and solid foundation, built up through years of experience. Landsvirkjun is now focussing on projects that will strengthen the company, including better efficiency in the utilisation of natural resources, improved cost efficiency and assessing the possibility of a submarine cable between Iceland and Great Britain. The cable would support the main pillars of the company policy and would significantly reduce risk in Icelandic energy production.

“The worldwide financial crisis presently affects Landsvirkjun,but  will not disrupt the long term goals of the company. Landsvirkjun can create great value for Icelandic society and could therefore have a positive effect on living standards in Iceland, for years to come” said Hörður.

226.265.983.477 kWh since operations began

Einar Mathiesen, Director of the Energy Division, described the operational aspects of the various power stations and the potential in energy production. Climate change  will eventually increase the flow rate of the rivers in Iceland and consequently this will boost the potential capacity for energy production. Energy production has already increased by 1000GW/hr, without extra investment. A further 500GW/hr could be achieved with further investment. There are a number of opportunities available within current operations, including the Þjórsá and Tungnaá rivers; by Búrfell, Sultartanga and Sigalda power stations, as well as the Blanda water catchment area.

A call for informed and qualified discourse
Ragna Árnadóttir, Executive Vice President of the Corporate Office deliberated on how the company could encourage society’s confidence and conciliation, and highlighted the fact that this relationship is fundamental to the very foundation of the company.

Ragna pointed out two main factors where securing society’s trust would be a priority. On the one hand; the harmony between utilization and protection and on the other hand; the distribution and sharing of profit, created through energy production.

Informed and qualified discourse on such matters is essential and in light of this, Ragna encouraged the various stakeholders to better assess and acknowledge each other’s needs.

Landsvirkjun intends to contribute to the process by increasing transparency and by informing stakeholders of their proposals for preparation, implementation and operation within a larger timeframe.

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