Water levels plummet at Landsvirkjun reservoirs in Iceland, raising concerns over electricity supply

Water levels in the reservoirs managed by Landsvirkjun are critically low, with none of the reservoirs filling up this summer. As a result, the likelihood of further restrictions on buyers of unsecured electricity remains high.

Ivar Baldvinsson, Head of Production Planning at Landsvirkjun, stated that the company is recovering from a difficult winter, and all three of its water regulation areas—Blöndu, Hálslón, and Þjórsársvæði—are currently in poor condition. There is a fifty percent chance that Blöndulón will fill, largely depending on the operation of the Blöndu power station. Baldvinsson is hopeful that Hálslón will reach capacity by the beginning of next month, which would be over a month later than last summer.

The situation in Þórisvatn is even worse, having not filled for four consecutive years. This year’s data suggests that it is unlikely to fill this autumn as well.

As a result of the reduced water levels, restrictions on supply will continue for buyers of unsecured electricity, including fishmeal factories. Baldvinsson explained that it is likely these restrictions will persist through autumn and into winter unless weather conditions improve significantly.

However, it’s too early to determine if power reductions will be necessary for large consumers as was done last winter. Uncertainty remains, with the weather being a significant factor. The situation will likely become clearer by the end of September when a better understanding of expectations can be established.