Landsvirkjun has decided to end curtailments of delivery of energy to power intensive users and district-heating plants, considering better water balance in the last few days. Plans to exercise buy-back option of primary energy were cancelled late last week. However, reduced delivery to fishmeal plants will continue for the time being.
Landsvirkjun’s reservoirs have been running very low during this winter, as often has been highlighted. Droughts last summer and autumn meant that the Þórisvatn reservoir did not fill up, but the lake is the most important reservoir in the Company’s largest operational area. In December 2021, reduced delivery to fishmeal plants was announced and in January it was announced that electricity delivery to power intensive users and district-heating plants had to be reduced.
However, in a short time the situation has improved significantly. As late as March 10, it was estimated that the curtailments would continue through April, but precipitation and warmer weather in the second half of March overturned this chilling forecast. Change in conditions resulted in an announcement from Landsvirkjun that buy-back of electricity would not be necessary, but that is considered as a last resort and the most expensive option when experiencing low reservoir levels. Now it is possible to cancel the curtailments.
“We are truly glad, on behalf of Landsvirkjun and our customers, that restrictions on delivery are ending for most of our customers. We go to great pains to ensure fair treatment for our customers, and I would like to take this opportunity and thank them especially for the cooperation and understanding in difficult times,” says Hörður Arnarson, Landsvirkjun’s CEO.