Iceland’s green energy portfolio and the European legal framework offer investors and industries possibilities to gain from some of the strongest drivers and incentives affecting the world’s energy sector.
Rising world energy consumption, growing demand for renewable energy, concerns about global warming, and international geopolitics are all important drivers affecting the world’s energy sector. These concerns are for example reflected in the European Union’s (EU) ambitious renewable energy policy.
EU’s energy policy includes binding targets for all the EU’s member states regarding more renewable energy and less carbon emissions. This policy is one of the drivers making Iceland’s renewable energy more competitive than ever before.
For more information go to our legal section.
Askja Energy – the Icelandic and Northern Energy Portal is an independent information source on energy issues in the countries of the Northern Atlantic and Arctic region. Our experts cover all topics relating to the energy sector, presented and explained in plain language with topical data, maps, photos, charts and other visual explanation.
Our aim is to be the perfect source for concise understanding of energy issues in the Northern Atlantic and Arctic region. We especially focus on the potentials in utilizing renewable energy sources. This includes issues like upcoming power projects, energy infrastructure, financial- and engineering services, legal- and regulatory environment etc. We offer our readers a clear and concise understanding of energy issues from:
- Canada and Alaska
- Greenland and Arctic-Russia
- United Kingdom
We are located in Reykjavík, Iceland. You can contact us through our contact-form.
Askja Energy Partners is an Iceland-based energy consulting firm. We deliver independent analysis, critical knowledge and data on energy industry trends, energy markets, geopolitics, law, and strategy. Askja Energy’s expertise covers all the renewable energy sectors, with special emphasis on hydropower, geothermal energy, and electricity transmission in the Northern Atlantic region. Our regional focus is on Eastern Canada, the Nordic Countries (including Greenland), and United Kingdom. Askja Energy Partners also provide consultancy on petroleum activities and strategy regarding the continental shelfs of Iceland and Greenland.
Besides offering consulting services, Askja Energy Partners is the producer and developer of the Icelandic and Northern Energy Portal. This is a special information and data website, covering all topics relating to energy issues in the Northern Atlantic region. We offer our readers clear and concise understanding of energy issues in the Northern Atlantic region, presented in plain language with relevant maps, photos, charts and other visual explanation.
Askja Energy Partners takes active part in discussions and development of Icelandic and Northern energy policies. Mr. Ketill Sigurjónsson, Managing Director of Askja Energy Partners, is an accomplished analyst, strategist and advocate, with deep knowledge and experience in the fields of energy development and finances. He is a frequent speaker at national and international conferences and roundtables, and a media commentator on issues of energy, development, law and economics.
Mr. Sigurjónsson earned his MBA from Copenhagen Business School (CBS) in 2008. He also holds degrees in law and business, having studied at the London School of Economics (LSE) and the University of Iceland. In his spare time Mr. Sigurjónsson is a voracious mountain hiker.
Subsea power cables are steadily becoming longer and being laid at more depths. Such a cable between Iceland and Europe will probably be close to 1,200 km in length and the greatest depth at the cable-route will be close to 1,000 m. In the Mediterranean subsea power cables have been laid at more than 1,600 m depth. Presently, the longest cable of this kind is close to 600 km and we will soon see cables extending 700-800 km, such as between Norway and Britain.
The first High Voltage Direct Current (HVDC) interconnector between Iceland and Europe might become a reality within a decade. Strong and important drivers, like access to more renewable power and increased energy security, are likely to speed up the process of such a project.
When looking further ahead, Europe and Northern America may become connected with power cables via Greenland and Iceland. Within a relatively short timeframe, cables between Europe and Iceland, Iceland and Greenland, and Greenland and Canada, may all becoming technically possible options for connecting power markets. This development will open access to new and important sources of renewable energy, especially highly flexible and controllable hydropower. Here at the Global Icelandic Energy Portal we present excellent information about the technology and economics of such cables under the category of subsea interconnectors.
Important basic facts:
› Electricity production in Iceland is 100% from renewable sources.
› Iceland produces more electricity than any other country (per capita).
› So far only half of the best options have been utilized. Construction is under way for both new geothermal and hydropower projects. In addition, Iceland has interesting potentials for harnessing the wind as a power source.
› With rising energy demand in the world, climate concerns, and EU’s ambitious renewable energy targets (20/20/20) Iceland’s green energy sources will become more competitive than ever before.
All electricity in Iceland comes from renewable power sources (hydro and geothermal). Icelandic electricity is also utilized in producing green fuels. Natural geothermal heat supplies most of the nation with low cost central heating and offer numerous other industrial possibilities. In comparison, more than three-quarters of the EU’s electricity comes from fossil fuels and nuclear plants.
Several attractive hydro and geothermal locations in Iceland are still unharnessed and there are new projects currently in development. Furthermore, it is likely that Iceland will soon focus on harnessing its excellent potential for wind power. The same applies to marine energy; the coast around Iceland offers numerous promising locations for experimenting with marine energy technology and possibly harnessing it in the future.
You will find more information about upcoming power projects under our renewable sources menu.
Electricity prices for industries in Iceland are substantially lower than the prices offered in the USA or Canada. In comparison with Europe, Iceland becomes even more competitive.
Thus, Iceland is a very economical location for firms that have electricity as an important cost factor. This fact has for decades drawn energy-intensive industries such as aluminum smelting to Iceland. With rising energy prices around the world and especially in the countries within the EU, new types of industries and services are finding Iceland an increasingly attractive location.
Currently, Iceland’s main power producer is offering long term electricity contracts at a fixed price of 43 USD/MWh. You can read more about the energy related business opportunities in Iceland in our investing section.
Icelandic engineers and technicians are known for their world-class expertise.
Icelandic engineering and consulting firms have up to 50 years experience in development and construction of hydro- and geothermal power plants and related areas, such as power transmission and infrastructure. Their projects are all around the world, covering wide range of services, including engineering, procurement, construction and maintenance.
For more information about the Icelandic engineering sector go to our pages on engineering & technology. You can also explore more related information, such as the main industries in Iceland and possibilities for foreign investment, under the invest category in the Main Menu.
Iceland’s stable renewable energy sources and secure and reliable electricity supply create competitive advantage and strong incentives for industries to locate in Iceland.
As Iceland is a member state of the European Economic Area (EEA), the energy business environment is based on the EU’s regulatory framework. This means that the arrangements applying to the single European market extends to Iceland.
Therefore EU and EEA firms can invest, for example, in industries and/or energy production in Iceland. Iceland is also participating in EU’s carbon trading scheme and has same kind of legal framework as the EU member states regarding electricity production and distribution.
Because of Iceland’s unharnessed renewable energy sources, it may be feasible to link Iceland and Europe with a green high voltage electricity cable. Recently, the world has been experiencing fast advancement in HVDC-transmission technologies, making this a real and an interesting possibility.
You will find more information about the technology and the business model behind such a connection under the transmission menu. Also, you may be interested in our investment section.
The glacial rivers in Iceland are the source of some of the most cost-efficient hydropower stations in the world.
By sustainable utilization of this renewable natural resource, Iceland now generates more electricity per capita than any other nation. The Icelandic power stations also rank among the worlds best regarding secure electricity supply.
By sustainable utilization of this renewable natural resource, Iceland now generates more electricity per capita than any other nation. Icelandic power stations also rank among the world’s best in terms of secure and reliable electricity supply.
For more information about Iceland’s hydropower, go to our hydro- and geothermal pages.
Unique geophysical conditions in Iceland offer numerous possibilities for low cost utilization of geothermal power.
Besides electricity generation, this for example includes direct central heating in Icelandic private homes, harnessing geothermal resources for spas and swimming pools, use of greenhouse farming and aquaculture, and even heating some of the streets in Reykjavik during winter to keep them from freezing over
Thus, it is not surprising that geothermal power utilization is a fast-growing industry in Iceland. Additionally, due to its cool climate, very competitive electricity prices and new cable connections, Iceland may become an especially interesting location for data centers.
The photo shows the Krafla Power Plant in Northeast Iceland that has a current capacity of 60 MW. An expansion is expected to make it twice as large within a few years. For more information about the Icelandic geothermal sector please visit our geothermal pages.