Landsvirkjun’s renewable energy potential explored in new report

Following a request from Landsvirkjun, GAM Management hf. [GAMMA] has published a report on the renewable energy potential and future outlook of Landsvirkjun based on four different investment and project scenarios, as well as its potential impact on the Icelandic economy.

The report presents, among other things, a discussion on the possibility of a submarine cable, connecting Iceland to the European energy market. The consequences of such an undertaking on the Icelandic economy are debated, by asking, for example, whether it would be more economical to only sell energy to the Icelandic market or to enlarge the market by connecting it to the European energy market.

Effects derived from the investment policy can in fact be split into three elements:

·     effects from investments during the investment period

·     effects from the operation of energy plants and new industrial activity

·     wealth effect derived from the improved financial situation of LV, i. e. dividend payments and tax paid into the Icelandic economy.

The Icelandic report was published on 28th June 2011; all numbers, data, calculations and conclusions are from that date.

To view the report in English, click here.

For more information regarding Landsvirkjun, visit www.landsvirkjun.com.

Contact Information

Ragna Sara Jónsdóttir

Director Corporate Communications

Landsvirkjun

(354) 515 90 88

sara@lv.is