Iceland - Energy

Energy

Last published date: 2024-03-15

Overview

Almost all of Iceland’s electricity is produced in hydroelectric and geothermal power plants. There are three main electricity producers: Landsvirkjun, which is state-owned; Reykjavík Energy, owned by three municipalities; and HS Energy, owned by local municipalities and private investors, some of whom are foreign. There is a nascent wind energy sector and some interest in developing solar power, especially for off-grid uses. As Landsvirkjun and Reykjavík Energy are publicly owned, tendering is mandatory if the value of a contract exceeds a certain limit. The price limit depends on the nature of the purchase. See websites below for further information.