Landsvirkjun

What Landsvirkjun does

Landsvirkjun is Iceland's state-owned national power company, founded in 1965 and wholly owned by the Icelandic government, supplying over 70% of the country's electricity. It operates a portfolio of 14 hydropower stations (~2,000 MW across four operational areas including Fljótsdalur at 690 MW), 3 geothermal stations in Northeast Iceland totaling 155 MW (Œistareykir 90 MW, Krafla 60 MW, Bjarnarflag 5 MW), and a 1.8 MW wind research site at Hafið; Iceland's first commercial wind farm, Vaðalda (120 MW, 28 Enercon E-138 EP3 turbines), is under construction with first turbines erected in May 2026 and full operation targeted for end-2027. Additional pipeline assets include Hvammur (95 MW) and the Sigalda expansion (150 → 215 MW). Approximately 92% of generation is hydropower.

The company monetizes baseload renewable power primarily through long-term, fixed-price, USD-denominated Power Purchase Agreements (PPAs) with power-intensive industries — accounting for ~85% of energy sold — including aluminum smelters (Alcoa Iceland at Reyðarfjörður for ~360,000 tons/yr; Norðurál at Grundartangi for 300,000+ tons/yr under a new 7-year 250 MW 2027-2033 PPA; Rio Tinto Iceland at Straumsvík for 212,000 tons/yr), ferrosilicon/silicon metal producers (Elkem Iceland, PCC BakkiSilicon), data center operators (Verne Global, AtNorth, Borealis — the latter with a 12 MW PPA signed June 2026 for AI infrastructure), and emerging aquaculture customers (First Water, Laxey). The remaining ~15% of output is sold into the wholesale market to TSO Landsnet and domestic retailers. A secondary revenue stream comes from European Guarantees of Origin (certified by TÜV SÜD), whose proceeds are reinvested into new renewable capacity.

Landsvirkjun is financed primarily through international green bond issuances (USD 200M in 2018 as Iceland's first green bond issuer; USD 150M in 2020; USD 220M in May 2026, upsized from a USD 180M target due to 4x oversubscription). The company carries an S&P rating of A-/A-2 with a Positive outlook (March 2026), a 65% equity ratio, and 1.7x net debt/EBITDA as of Q1 2026, when operating revenue was USD 165M and profit from core operations was USD 88M (+10% YoY). It holds ISO 14001, EU Taxonomy alignment, and a CDP A rating; an international consulting subsidiary (Landsvirkjun Power) is active in Canada and Greenland.

Name

Landsvirkjun

Legal name

Landsvirkjun

Website

https://landsvirkjun.com

Company type

Private

Founded year

1965

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Landsvirkjun is Iceland's state-owned national power company, generating ~2,000 MW from 14 hydropower stations and 3 geothermal plants to supply over 70% of Iceland's electricity via long-term PPAs to aluminum smelters, ferrosilicon producers, data centers, and aquaculture operators, with a 120 MW wind farm and additional capacity under construction.

Ownership category

akta.pro rank

Product category

Renewable Energy Generation and Supply

NAICS

Hydroelectric Power Generation (221111), Geothermal Electric Power Generation (221116), Wind Electric Power Generation (221115), Electric Power Generation (22111)

SIC

Cogeneration Services & Small Power Producers (4991)

akta.pro primary industry

Distributed Generation (DG) Solar & Small Wind (EUAMAJAD)

Keywords

• Renewable energy generation
• Hydropower operations
• Geothermal power production
• Power purchase agreements
• Green bond financing

Headquarters

HQ city

Reykjavík

HQ country

Iceland

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Technology or R&D, Supply Chain

Revenue model

1. Electricity Sales to Power-Intensive Industries: Approximately 85% of generated energy sold to power-intensive industries including aluminum smelters, ferrosilicon plants, data centers, and aquaculture operations through long-term fixed-price Power Purchase Agreements. Provides predictable revenue stream with contracts priced in USD.
2. Wholesale Market Electricity Sales: Approximately 15% of energy sold in the wholesale market and to transmission system operator Landsnet. Includes sales to domestic electricity retailers and households.
3. Guarantees of Origin: Revenues from Guarantees of Origin (GOs) - European certification system for renewable electricity origin. GOs revenues reinvested into new renewable energy production projects.
4. Green Bond Financing: Green bond issuances to finance renewable energy projects. Issued USD 220 million in green bonds (May 2026). First Icelandic issuer of green bonds (March 2018) with USD 200M USPP. Second issuance September 2020 with USD 150M.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels5 records

Core offering

Landsvirkjun generates electricity exclusively from renewable energy sources (hydropower, geothermal, and wind) and sells it primarily through long-term, fixed-price Power Purchase Agreements (PPAs) to power-intensive industries in Iceland. The company also issues Guarantees of Origin certificates for renewable electricity and provides green bond financing instruments. Approximately 85% of generated energy is sold to industrial customers (aluminum smelters, ferrosilicon plants, data centers, aquaculture) and 15% is sold in the wholesale market.

Product overview

Landsvirkjun is Iceland's National Power Company, operating a portfolio of 19 power stations generating electricity from three renewable sources: hydropower (14 stations, ~2,000 MW), geothermal (3 stations, 155 MW), and wind power (2 research turbines plus Vaðalda wind farm under construction). The company offers long-term Power Purchase Agreements (PPAs) to industrial customers and provides Guarantees of Origin certificates. Key construction projects include Iceland's first wind farm at Vaðalda (120 MW), Hvammur hydropower station (95 MW), and Sigalda expansion (increasing to 215 MW). The company also operates visitor attractions including the Ljósafoss Energy Exhibition and Krafla Visitor Centre, and issues green bonds to finance renewable energy projects.

Differentiator

Problem solved

Functional benefit

Products and services

• Hydropower Generation Electricity generated from 14 hydroelectric power stations across four operational areas in Iceland, generating approximately 92% of total electricity production. Includes major stations such as Fljótsdalur (690 MW), Búrfell (270 MW), and Hrauneyjafoss (210 MW), with 70 km of tunnels. Sold to industrial PPAs and wholesale market.
• Geothermal Generation Electricity generated from three geothermal power stations in Northeast Iceland: Þeistareykir (90 MW), Krafla (60 MW, with 18 production wells), and Bjarnarflag (5 MW). Provides baseload renewable energy complementary to hydropower.
• Wind Power Generation Electricity generated from wind turbines, including 2 research turbines at Hafið in South Iceland (1.8 MW total) and the Vaðalda Wind Farm (Iceland's first commercial wind farm, 120 MW, 28 Enercon turbines) under construction for full operation by end-2027.
• Power Purchase Agreements (PPAs) Long-term, fixed-price renewable Power Purchase Agreements offered to industrial customers, providing competitive pricing, supply security, and investment confidence. Contracts are priced in USD to align with international financing structures. Approximately 85% of generated energy is sold through PPAs to aluminum smelters, ferrosilicon plants, data centers, and aquaculture operations.
• Guarantees of Origin (GOs) European certification system for renewable electricity origin. Guarantees of Origin certify that electricity sold comes from renewable sources and are sold by the Greendesk unit to international customers needing to substantiate renewable energy usage. Revenues are reinvested into new renewable energy production projects.
• Green Bonds Green financing instruments where proceeds are allocated to finance and refinance assets and projects with positive climate and environmental impact, aligned with ICMA Green Bond Principles. Used to fund renewable energy construction projects including the Vaðalda Wind Farm.

Quantifiable outcome

• Emissions intensity of 3.1 gCO2-eq/kWh in 2025, among lowest globally
• +3 more outcomes

Named customers10 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• Borealis Data CentercoreStrategic or Co-development Partner · 23 June 2026Long-term 12MW Power Purchase Agreement supporting expansion of data center campus in Blönduós, Iceland. Partnership builds on existing relationship since 2018. Supports growing AI infrastructure demands with liquid-cooled NVIDIA equipment.
• NorðurálcoreStrategic or Co-development Partner · 24 March 20267-year power purchase agreement (2027-2033) for up to 250 MW annually to aluminum smelter at Grundartangi. Long-standing relationship spanning nearly 30 years with contracted volume growing from 100 MW to support expanded production.
• EnerconcoreTechnology or IntegrationTurbine supplier for 120-MW Vaðalda Wind Farm. German manufacturer providing 28 E-138 EP3 turbines with 81-metre hub heights. First turbine shipments began May 2026.
• COWIminorImplementation/ SI/ Consulting PartnerDanish consulting firm providing technical supervision and engineering support for turbine delivery and installation phase of Vaðalda wind farm project.
• Verne GlobalcoreStrategic or Co-development PartnerData center operator since 2009 PPA signing. Operates campus at Ásbrú in Reykjanesbær serving international companies including those in climate research, finance, and biotechnology.
• AtNorthcoreStrategic or Co-development PartnerNordic data center company operating three facilities in Iceland. PPA signed in 2016. Expanding across Iceland, Sweden, Finland, and Denmark.
• First WaterminorStrategic or Co-development PartnerLand-based salmon farming company. Green power agreement signed in 2022. Growing from 700 tons (2023) to 50,000 ton production target.
• Landsvirkjun PowercoreStrategic or Co-development PartnerSubsidiary conducting international operations supporting energy transition of Arctic countries including Canada and Greenland through hydropower and geothermal expertise.

Scale indicators10 records

Recent moves11 records

Expansion highlights6 records

Direct peers

• Statkraft: Norway's state-owned renewable energy company and Europe's largest renewable energy generator. Operates a hydropower-dominant portfolio across the Nordics, sells to power-intensive industries via long-term PPAs, and is expanding into wind and other renewables. Closest structural and operational analog to Landsvirkjun.
• Vattenfall: Swedish state-owned utility with significant hydropower and wind generation, plus district heating. Operates across Northern Europe with a similar renewable-heavy mix and serves large industrial customers via long-term contracts.
• Fortum: Finnish state-linked utility with a large hydropower and nuclear portfolio across the Nordics. Comparable in scale and customer base to Landsvirkjun with similar focus on baseload renewable supply to power-intensive industries.
• Hydro-Québec: Canadian provincial crown corporation operating one of the largest hydropower fleets in the world. Sells substantial volumes to aluminum smelters in Quebec under long-term contracts, making its customer mix and operational profile highly comparable to Landsvirkjun.
• BC Hydro: Canadian provincial crown corporation and one of the largest electric utilities in North America. Generates predominantly from hydropower, serving large industrial customers (including aluminum smelters) and residential loads under regulated frameworks.
• Ontario Power Generation: Ontario's provincial generation company with a diversified portfolio spanning hydro, nuclear, and wind. Comparable state-owned utility profile with significant renewable baseload capacity serving industrial customers.
• Enel Green Power: Global renewable energy developer and operator within the Enel Group, with large-scale hydro, wind, geothermal, and solar capacity across multiple continents. Comparable in renewable technology breadth and geographic diversification.
• Iberdrola: Spanish-headquartered global utility with one of the world's largest installed hydropower bases and significant wind generation. Comparable in terms of being a vertically integrated renewable-heavy utility selling to large industrial customers.

Broad incumbents

• Norsk Hydro: Norwegian integrated aluminum and hydropower company that operates its own captive hydro plants and aluminum smelters. Demonstrates the vertical integration model where hydropower directly powers smelting operations, mirroring the relationship between Landsvirkjun and Iceland's aluminum customers.

Others

• Alcoa: Major global aluminum producer and one of Landsvirkjun's largest long-term PPA customers (Alcoa Iceland operates a 360,000-ton smelter). Key counterparty offtake risk and a strategic partner in the Icelandic industrial electricity ecosystem.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/landsvirkjun

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Landsvirkjun