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Expansion of Þeistareykir Geothermal Station

The expansion of Þeistareykir Geothermal Station with a third generating unit is the next step in the development of geothermal utilisation at Þeistareykir.

A Third Generating Unit

More about Þeistareykir Geothermal Station

Þeistareykir Geothermal Station was designed from the outset to be developed in phases. The existing station has two generating units and an installed capacity of 90 MW, while the original environmental impact assessment allowed for a geothermal power station of up to 200 MW in the area. The planned expansion involves adding a third generating unit with expected capacity of 45 MW. It will further strengthen the role of Þeistareykir Geothermal Station as one of Iceland’s key geothermal power stations.

The project builds on operational experience gained since the first two generating units were commissioned in 2017 and 2018, as well as on years of research and monitoring in the area. The aim is to increase electricity generation at Þeistareykir through responsible and sustainable utilisation of the resource, improve energy efficiency and support continued value creation from geothermal energy in the area.

  • Construction is expected to begin in the first half of 2028.
  • Commissioning is planned before the end of 2031.
Computer-generated image showing how Þeistareykir Geothermal Station could look following full expansion to four generating units.

Q&A

Below you can see a few main questions and answers about the expansion of Þeistareykir Geothermal Station.

General Information

  • A third generating unit will be added to the two already in operation. The aim is to increase electricity generation, improve utilisation of the resource and continue developing the station’s production process based on the experience gained since operations began in 2017.

  • The installed capacity of Þeistareykir Geothermal Station will increase from 90 MW to 160 MW with the addition of the top-pressure turbine and the third generating unit.

  • We have gained valuable operating experience, research results have strengthened the basis for the project, and we believe the resource can support increased utilisation. Through careful development, it is possible to increase electricity generation and improve the utilisation of geothermal energy.

Resource and utilisation

  • The expansion is based on continued research, modelling and monitoring of how the resource responds. The aim is to increase utilisation within the limits of what the resource can sustain and to ensure that changes in temperature, pressure, groundwater and chemical conditions are monitored and assessed regularly.

  • According to the application to expand the utilisation licence, the request is to increase gross primary energy from 19 to up to 28.5 PJ per year and gross mass extraction from 10 to up to 15 Tg per year. However, the company will not extract more than is needed at any given time.