Iceland review - 2013, Page 110

108 ICELAND REVIEW
Invest
In Iceland
Intangible Energy
– Tangible Value Creation
Merkið Landsvirkjun_Merki
Iceland is the world’s only country to produce
virtually all its electricity from renewable sources,
falling water and the heat of the earth. With
a production five times what’s needed for local
consumption, energy is one of the country’s most
valuable resources. Landsvirkjun, the national power
company, generates over 70 percent of this energy
primarily from hydroelectric sources. The company
is one of the ten largest producers of renewable
energy in Europe.
Market leaders in power-intensive industries con-
tinue to expand their investments and operations in
Iceland, focusing on the competitive energy prices,
the unrivaled security of supply and the careful con-
sideration of environmental factors. With its valuable
access to natural resources and renewable energy,
solid infrastructure and skilled population, Iceland is
truly an option to consider.
Landsvirkjun operates 13 hydropower stations
and two geothermal stations in five areas of opera-
tion. In addition, the company operates two wind
turbines as part of a research program which, if
successful, will turn wind energy into the third pil-
lar of its future production of renewable energy.
Landsvirkjun’s operation is based on an integrated
approach, where prudence, reliability and harmony
with the environment and society are fundamental.
Efficiency paired with responsibility makes the com-
pany a choice partner for power intensive industries
and services.
a ProPoSiTion oF reaL VaLue
landsvirkjun’s main message to prospective
customers has been the availability of energy
contracts that place particular emphasis on the
following aspects:
u the most competitive energy prices in Europe
u 100 percent renewable energy
u reliable long-term energy contracts
Landsvirkjun consistently endeavors to offer the
most competitive terms on electricity in Europe with
attractive and stable electricity prices, long-term
contracts and a reliable supply. The company took
a substantial step in 2011 when it published long-
term electricity prices for the industrial sector in
Iceland.The company introduced 12-year contracts
for renewable electricity at the most competitive
prices in Europe: USD 43/MWh with negotiated dis-
count for the first few years in greenfield projects. In
comparison, the average market price of electricity
(2010-2012) was USD 63/MWh in the Netherlands,
USD 57/MWh in Scandinavia and USD 60/MWh
in Germany. Recently, the World Economic Forum
(WEF) rated the security of supply in Iceland as the
2nd most reliable in the world.
FroM kiLoTonS To TeraByTeS
Iceland’s infrastructure is well suited to support data
centers, with its fully redundant dual optical data
transmission pathways to Europe and a backup
connection to North America, its reliable power
transmission system built to support power intensive
international aluminum smelters, and its ample sup-
ply of suitable land space offering year-round sav-
ings in cooling costs due to the temperate climate.
Landsvirkjun’s goal is to be a leader in the sustain-
able use of renewable energy sources, to facilitate
and contribute to true expertise and to support
innovative technologies. The company’s largest
clients are aluminium producers, but the expanding
portfolio ranges from the manufacture of aluminium
foil for electrolytic capacitors to power intensive data
centres – from almost a million tons of aluminium to
terabytes of data.
Alcoa Rio Tinto Alcan Nordurál Elkem
Becromal Verne Holdings (<1%) General market

39%

9%

3
%

14%
23%
12%
Division of electricity sales (MWh)