Iceland Renewable Energy Cluster products

The first hydropower plant in Iceland started operation in 1904 in Hafnafjörður. Reykjavík saw its first hydropower plant set up in 1921 and Akureyri in 1922. With these plants, the electricity market in Iceland was created. In 1965, Iceland established the national power company Landsvirkjun to “optimize the country’s natural energy resources and to encourage foreign investors within power-intensive industries to invest in Iceland.” Bigger hydropower development started in the early 1970s. Today, the country has an installed hydropower power generation capacity of 2,204 MW. This represents around  72% of the whole power generation capacity in Iceland. Iceland participated actively in the development and establishment of the Hydropower Sustainability Assessment Protocol and was one of the early supporters and is actively an active user.

Above is the cluster map of the geothermal energy sector in Iceland which was issued by Michael Porter, a professor at the Harvard Business School 2016. It shows all the detailed and important links of the geothermal energy value chain.

Despite being located in the North Atlantic and wind being a constant in the country, there has been only limited development of wind power project. A pilot project by the national power company Landsvirkjun set up two wind turbines with a combined capacity of 2 MW as an R&D project in 2013. With average capacity factor that is exceeding offshore numbers for wind parks elsewhere, it proves that there are great opportunities for wind power development in Iceland. Today, there are several players looking at wind development in various regions of Iceland. Combined with baseload capacity hydropower and geothermal power, it surely would expand the availability of price competitive green power. We are working with the different parties engaged in development.

The Iceland Renewable Energy Cluster serves as a collaborative platform for companies and institutions involved in the Icelandic energy sector, covering the entire value chain. Its primary objective is to enhance the competitiveness of its members and the overall society while showcasing the capabilities of its members.