Orkuveitan secures 11 billion króna loan from Council of Europe Development Bank for Iceland utility expansion

Orkuveitan has secured an 11 billion Icelandic króna loan from the Council of Europe Development Bank (CEB) to develop electrical, heating, and water supply networks in Iceland. This funding is crucial as the population in the capital region is rapidly increasing, necessitating the construction of new housing linked to the services provided by Veitur, a subsidiary of Orkuveitan.

In addition to expanding utility networks, efforts will be focused on enhancing reserves for the geothermal heating system and upgrading the electrical network to accommodate energy transition initiatives. The utilities must also strengthen their infrastructure in response to climate change impacts, such as rising sea levels, increased rainfall intensity, and unpredictable weather patterns.

The bank emphasizes that utility services are offered at attractive prices, providing stabilizing effects on the community. Sævar Freyr Þráinsson, CEO of Orkuveitan, stated, “Orkuveitan is growing and strengthening. The utilities are operating under ambitious plans to enhance their systems, which are fundamental to the sustainability of our society. It is encouraging that Orkuveitan enjoys confidence in diverse and favorable funding for these essential projects.”

Recent developments include the installation and connection of a new southern pipeline for the heating service in the southern capital area, as well as the construction of a new substation for the electrical services to facilitate charging for cruise ships at the Sundahöfn port.