Emissions from electricity generation decreased
Emissions from Landsvirkjun’s electricity generation were 3.1 gCO2-eq/kWh in 2025 (emissions per kilowatt-hour generated), and remain among the lowest in the power sector. Emissions decreased year-on-year, mainly due to lower generation from geothermal power plants. Indirect emissions in Scope 3, however, increased due to expanded activity in construction projects. This is stated in Company’s Climate Accounts for 2025.
Landsvirkjun generates electricity solely from renewable sources; hydropower, geothermal energy and wind power. All of our electricity generation is environmentally sustainable, in accordance with the EU Taxonomy Regulation (Regulation (EU) 2020/852) and Icelandic regulation no. 10/2024.
Emissions from geothermal stations decreased by 18% year-on-year, largely due to lower power generation following PCC’s operational difficulties at Bakki. Geothermal emissions intensity decreased slightly. Emissions from hydropower reservoirs increased by 16% from the previous year. Weather conditions affect these emissions, which rise as the number of ice-free days on reservoirs increases.
Total emissions from the Company‘s operations increased by 10%, which can be attributed to the construction of the Vaðalda wind farm and the Hvammsvirkjun hydropower project.
Landsvirkjun emphasises preventing emissions from construction projects, both during the design phase and the construction phase. Among other measures, we apply an internal carbon price in tenders to encourage contractors to reduce emissions from fuel use and to choose materials with a low carbon footprint.
Total emissions intensity was 5.8 gCO2-eq/kWh and remain below the Science Based Targets Initiative threshold for net-zero power companies (9.1 gCO2-eq/kWh). Power companies can be considered net-zero if emissions are below this threshold, provided they offset the remaining emissions.
