CEO defends Iceland’s energy supply amid Landsnet’s forecast of shortages

The CEO of Landsvirkjun, Hörður Arnarson, has stated that Iceland has never experienced an energy shortage in the company’s history. He described the ongoing discussions about energy shortages as unfortunate and characterized them as a distortion of facts. While he acknowledged an increasing need for energy in the near future, he asserted that there is no imminent crisis.

Recently, Landsnet released a report forecasting energy needs in Iceland from 2024 to 2050, predicting a persistent energy shortage until 2029. However, Arnarson emphasized that the demand for electricity over the next decade is well-known and manageable. He criticized the media’s portrayal of energy shortages, asserting that when power tariffs are reduced, it does not equate to a shortage but rather is part of contractual agreements within the renewable energy system.

He pointed out that those under contracts for curtailed energy should expect their energy supply to be adjusted as per these agreements, which should not come as a surprise. The Landsnet forecast suggests a potential increase in energy demand of up to 116% towards the middle of the century, driven by prospects like increased electricity usage for fuel.

Arnarson also noted that while it is unfortunate for parties aiming to expand or start new operations without securing new electricity contracts, it does not reflect an actual energy shortage. An energy shortage occurs only when contractual obligations cannot be met, a situation he insists has never happened during the history of Landsvirkjun.