Landsvirkjun's largest clients are energy intensive users
Landsvirkjun offers its clients a high standard of service and competitive products. We sell 85% of our energy to our largest clients and we generated a total of 14.2 TWh of energy this year.
Division of electricity sales
Energy intensive users
The Alcoa aluminium plant in Reydarfjordur is Iceland's largest aluminium plant, producing 346,000 tonnes of aluminium per year. The plant became operational in 2007 and is the most recent of Landsvirkjun‘s aluminium industry clients. Landsvirkjun supplies all the electricity consumed by the plant.
The Becromal plant in Akureyri produces aluminium foils for electrolytic capacitors. This plant became operational in 2008. Landsvirkjun supplies all electricity consumed by the plant.
The Elkem ferrosilicon plant at Grundartangi became operational in 1979 and in the early years produced 60,000 tonnes per year. The capacity of the plant was increased in several stages and today the plant produces 120,000 tonnes per year. Landsvirkjun supplies all electricity consumed by the plant.
Rio Tinto Alcan
The Rio Tinto Alcan aluminium plant in Hafnarfjordur became operational in 1969 and at that time produced only 33,000 tonnes of aluminium per year. Over the years the plant has expanded to its current installed capacity of 208,000 tonnes per year. Landsvirkjun supplies all electricity consumed by the plant.
Norðurál aluminium plant in Grundartangi became operational in 1998 and produced 60,000 tonnes of aluminium at the time. The plant's capacity is now at 317,000 tonnes per year. Landsvirkjun currently supplies approximately one-third of the electricity consumed by the plant.
Verne Global's data center started operating in 2012 and offers international data center services in Iceland. The operations are growing and pioneer the way for Icelandic international data center services. Landsvirkjun provides Verne Global with all its power.
Advania is a leading Nordic IT company with operations in Iceland, Sweden and Norway. About 1000 people work at the company, in 20 locations. Advania operates data centers in Hafnarfjordur and in Fitjar in Reykjanes.
PCC BakkiSilicon’s new silicon metal plant is currently under construction in Bakki near Husavik. The facility is scheduled to commence operations in early 2018 and will produce up to 26,000 tonnes.
United Silicon operates a silicon metal plant in Helguvík. The company has been under a moratorium on payments since August, 2017.
The wholesale market
Landsvirkjun does not sell its energy directly to homes or small businesses. Landsvirkjun sells electricity on the wholesale market to suppliers who then sell the electricity to end users. These suppliers buy some of their electricity from Landsvirkjun but also generate part of their supply at their own power stations. Approximately 2.1 TWh or 15% is sold in this manner.
The suppliers include Orkusalan, ON Power, HS Orka, Fallorka, Westfjord Power Company, Rafveita Reyðarfjarðar and Íslensk orkumiðlun.
A new type of wholesale contract was introduced in 2017 to replace contracts that had been valid since 2005. The new contracts were designed to improve the utilisation of the resource. Suppliers are no longer bound to purchasing energy for certain periods and short-term purchases have increased.
Short-term sales increased by a factor of four compared to previous years as a result of these changes and power savings were anything up to 70 MW in individual months. Average prices to the wholesale market fell between 2016 and 2017 as a result of more efficient purchases and reduced energy purchase commitments.
More information can be found on the wholesale market on Landsvirkjun’s website