Business & Government Nov 30, 2020

Landsvirkjun Releases Competitive Pricing Report

Landsvirkjun released the report as requested by the Ministry of Industries and Innovation in Iceland.

A recent report by Landsvirkjun, Iceland’s national power company, found that the competitive electricity prices in the aluminum and data center industries in the country do not negatively impact the industries in general. The report was compiled by the Fraunhofer Institute for Systems and Innovation Research ISI and was requested by the Ministry of Industries and Innovation in Iceland.

Landsvirkjun’s CEO, Hörður Arnarson, said: “This confirms what we already firmly believe, that we offer green energy at competitive prices. We are pleased that this has now been confirmed by an independent expert.” He added, “We have always remained committed to maintaining a close relationship with our customers and to identifying feasible solutions to achieve mutually successful results. Landsvirkjun’s role is to maximise the potential yield and value of the renewable energy resources it has been entrusted with.”

The report also found that in Iceland’s data center industry, the Power Usage Effectiveness (PUE) of Icelandic data centers is above the European average, and is in range of the most efficient data centers in Europe. This is likely attributed to Iceland’s cold climate, which naturally reduces the need for cooling in data centers. 

Fraunhofer was approached by the Ministry of Industry and Innovation to study the impact of electricity pricing on the competitiveness of energy industries in Iceland. This type of report has never been conducted in Iceland, so the Ministry found there was an urgency to review the landscape and publish an independent analysis with an emphasis on electricity costs. Given the importance of the energy industries and electricity sales in the Icelandic economy, the Ministry approached Fraunhover and Landsvirkjun wished to publish the results after all parties were consulted and reservations regarding the disclosure of aluminium industry energy costs were taken into consideration.

You can learn more about Landsvirkjun and its sustainability efforts here!

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