Pressing Energy Matters
Time and time again, Landsvirkjun has warned against the possibility of a situation we are now facing. The electricity system is running at full capacity, and there is a foreseeable electricity shortage when demand is not met to sustain average growth in industries in Iceland. Let alone the heralded energy transition. The main concern is 2025-26 before a new generation of power stations starts operations.
Landsvirkjun constructed three of the Company’s ten power stations from 2010-2020, i.e., Búðarháls Power Station, Þeistareykir Geothermal Station, and Búrfell Power Station II. The gross installed capacity of the three power stations is 285 MW, with a generation capacity of more than two terawatt hours annually. These power stations increased generation capacity by almost 20%. From this, it is evident that Landsvirkjun diligently developed the country’s electricity system during the second decade of this Century. In general, the generation capacity met demand.
However, demand is rapidly increasing. Households and smaller companies have increased consumption by 5-10 MW annually. Furthermore, innovating customers in food production and data centre services, among others, have introduced large-scale and energy-demanding development plans. Not to mention the all-important energy transition.