Curtailment Continues Due to Abysmal Water Year

Landsvirkjun is compelled to extend the curtailment of electricity to customers beyond the anticipated period this spring. This is due to exceptionally severe water scarcity resulting from an abysmal water year that has left the Company’s reservoirs at alarmingly low levels. The current predicament is unlikely to alleviate until spring thaw when an augmented inflow is expected in Landsvirkjun’s catchment area.

Weather conditions during the past winter have been extraordinarily difficult for Landsvirkjun’s water budget in all catchment areas. This winter has been cold and dry in Landsvirkjun’s catchment areas, leading to one of the lowest inflows ever. Except for a thaw in the Þjórsá river basin in March, the drawdown has been relentless in all reservoirs.

Since operations commenced, water levels have been at their lowest at the beginning of spring at Fljótsdalur Power Station. Furthermore, water levels at the reservoir at Blanda Power Station have never been lower at this time of year.

Late last year, curtailment to large end users in the southwest area of Iceland was necessary. In the beginning, fish meal and -drying factories experienced curtailment, as did data centres that mine for cryptocurrency. Next were large end users such as Elkem, Norðurál, Rio Tinto, and district-heating plants. In February, curtailments were announced for the north and eastern part of the country, which included the aluminium smelter Alcoa Fjarðarál, the silicon plant PCC Bakki, the aluminium foils producer TDK, and the data centre atNorth.

Landsvirkjun changed the wholesale arrangement when the curtailment started guarding against any uncertainty regarding water levels in spring, thus increasing delivery security to households and smaller companies. Therefore, sales have been limited to one month at a time, and long-term PPAs have not been offered. This arrangement will continue unchanged while the curtailment lasts.