Landsvirkjun

Landsvirkjun is the National Power Company of Iceland and a state‑owned partnership headquartered in Reykjavík. Established in 1965, it operates exclusively in the energy sector and is Iceland’s largest electricity generator, producing over 70% of the country’s power and meeting around 73% of national electricity demand. The company generates only from renewable sources—hydropower, geothermal energy and wind—and by 2025 operated fourteen hydropower stations, three geothermal plants and two onshore wind turbines across five operating areas in Iceland, with annual generation of roughly 14–15 TWh. Landsvirkjun sells electricity domestically to power‑intensive industrial users, notably aluminium smelters, and to electricity retailers on the wholesale market, which then serve households and smaller businesses. It has also signed long‑term green PPAs with data centres, aquaculture operators and other industrial customers. Internationally, Landsvirkjun participates in energy projects and consultancy through Landsvirkjun Power and has taken minority stakes in hydropower projects abroad. The company is fully owned by the Icelandic state and finances itself through bonds, loans, project finance and revolving credit facilities, with all new funding since 2018 structured as green or sustainability‑linked. It was the first Icelandic issuer of green bonds and maintains an S&P Global Ratings A‑ range credit rating. Landsvirkjun’s strategy focuses on maximising the value of entrusted renewable resources in a sustainable and efficient manner, under a vision of a sustainable world powered by renewable energy. It reports very low lifecycle emissions (on the order of a few grams CO2‑equivalent per kWh) and has committed to carbon neutrality by 2025 and carbon negativity by 2030. The company underpins this with a green finance framework, stringent procurement and supplier codes, and extensive innovation programmes in areas such as geothermal utilisation, low‑carbon fuels, energy transition in transport and aviation, and regional green energy parks.