Iceland generates 99.98% of its electricity from renewable energy resources and Landsvirkjun generates 75% of this energy. We operate 14 hydropower stations, two geothermal power stations and two wind turbines in five areas of operation, all over Iceland. We believe in an integrated approach where prudence, reliability and the harmony of operations with the environment and society, are fundamental to our operations.
Hydropower: 12.316.6 GWh
Landsvirkun’s total energy generation in 2014.
Landsvirkjun’s water reservoir levels were low at the beginning of 2014. Such low levels have not been measured for the last fifteen years or since 1998. Precipitation levels in the Þjórsá and Blanda areas in the first two months of this year were the lowest recorded since monitoring began. However, precipitation levels were satisfactory in the east and north of the country and snow levels were high in mountainous areas.
Subsequently, Landsvirkjun realised that they would have to reduce the supply of interruptible power and clients were informed of the situation in the middle of January. The reduction to the supply of interruptible power began on the 20th of February for energy intensive clients and on the 1st of March for domestic heating clients. The curtailment was partially lifted at the end of April and fully lifted by the 7th of May.
According to current power contract agreements, Landsvirkjun has the right to reduce the supply of interruptible power to its energy intensive industry and wholesale clients during a poor water year.
An unusually dry period ended at the beginning of March and the month was almost average with regard to precipitation levels, temperature and snowfall. Snowfall continued in the north and east of the country. A short-lived thawing period occurred at the end of March and there was some thawing of areas in the south and west of the country (particularly below 400-600 m.a.s.l).
Hydropower accounts for approximately 96% of Landsvirkjun’s generation and geothermal energy accounts for just 4%.
Weather conditions were average up until the spring period; both temperature and precipitation levels. Newly fallen snow in the south and west of the country thawed at a slow and steady rate until the beginning of April. Water levels in the reservoirs were closely monitored and predictions on lowest potential levels and subsequent energy reductions were updated on a daily basis. Þórisvatn was almost empty at the beginning of April.
Landsvirkjun generated 12.692 GWh of electrical energy for the Landsnet transmission grid in 2014, a decrease of 0.2% when compared with figures for 2013.
A milder climate took over at the end of May and snow began to melt in the eastern parts. Glacial ablation began at the end of June/beginning of July and there were high precipitation levels in the south and west of the country. The Hálslón Reservoir reached spillover at the end of August and the Blanda Reservoir followed suit at the end of September. Only 24 cm of water was needed to fill the Þórisvatn Reservoir in the middle of October.
Geothermal energy: 483.7 GWh
In 2014, energy generation at Landsvirkjun’s geothermal stations at Krafla and Bjarnarflag was approx. 484GWh. We are committed to utilising geothermal energy in a sustainable and responsible manner. An integral part of this approach is ensuring that a balance is maintained between the utilisation and the natural renewal of the geothermal reservoir.
Separated water not utilised directly for electricity production is injected back down into the geothermal reservoir. Since 2012, re-injection levels have been increased gradually, from 80kg/s up to 125 kg/s. Only 13 kg/s are not re-injected into the system but all separated water will be re-injected into the geothermal reservoir at Krafla.
Wind power: 6.7 GWh
Landsvirkjun operates two wind turbines for research purposes in an area called Hafið just to the north of Búrfell. Each turbine has an installed capacity of 0.9 MW. Operations have been successful this year with few interruptions.
Operation of power stations
The operations of Landsvirkjun's power stations were successful throughout the year. There were 87 unforeseen interruptions at Landsvirkjun’s power stations during 2014, compared with 76 in 2012. Landsvirkjun's goal is to ensure that generating units in the power stations are available 99% of the year, not accounting for routine maintenance periods. The goal was achieved this year as units were available 99.7% of the time, comparable to that of 2013.
The monitoring, maintenance and operation of power stations was routinely carried out throughout the year. Landsvirkjun operates in accordance with an integrated, certified Quality Management and Environmental Safety Management System, based on ISO 9001, ISO 14001, OHSAS 18001 and the Internal Electrical Safety Operation System (RÖSK), which fulfils the criteria set out by the Iceland Construction Authority on electrical safety issues. Landsvirkjun has been certified as a producer of green electricity by the German company TÜV SÜD, who specialise in certification, testing and inspection. In addition, the Company’s IT Division’s safety management system is certified in accordance with ISO 27001.
Natural disaster response plan
Iceland’s electricity network is in many ways its lifeline. Response plans to any type of disaster must therefore be well defined. The objective is to ensure the secure operation of the electricity network which acts as the foundation for the working community and national economy.
Landsvirkjun’s emergency management team was activated on the 16th of August, 2014 when the Department of Civil Protection and Emergency Management, under the auspices of the National Commissioner of the Icelandic Police, declared the country to be at the ‘alert phase’ as a result of volcanic activity at Bárðarbunga. Regular meetings have been held since then to assess and disseminate information on the status of volcanic activity to the north of the Vatnajökull Glacier.
Landsvirkjun’s response plan for natural disasters includes seismic activity, ash fall and floods of various sizes. Response plans were updated as a result of the activity at Holuhraun and Bárðarbunga and preparation measures were undertaken for possible scenarios which could be realised as a result of the activity. A decision was made to improve flood protection at Hágöngur in order to prevent a dam break in a large-scale flood. Ventilation systems were checked at all power stations in the Þjórsá and Tungnaá river catchment areas in case of extensive ash fall and action plans for protecting the stations in case of flooding were also reviewed.

Large-scale eruptions, earthquakes and floods can significantly affect Landsvirkjun’s operations. Volcanic activity in Holuhraun and Bárðarbungu resulted in the development of a response plan for the possible consequences of volcanic activity on the Company’s operational areas.
Investments in operational power stations
There were 102 investment and refurbishment projects in 2014. A new unit transformer was purchased for the Búrfell Hydropower Station. A small-scale hydropower station began operations by Hágöngulón Reservoir in the mid- September and will provide the gate equipment and emergency services transmitters at Skrokkalda transmitter station with electricity, replacing the diesel engine used in previous years. The original control system was renewed at the Blanda Hydropower Station. The renewal took place during full operations and down time was minimal. The project was successful and was completed by mid-November. The gas removal system for turbine two at the Krafla Geothermal Power Station was partially replaced, increasing the power from the generator by um 1.5 MW or equal to 2.5 GWh of production, annually.
Asset management of power stations
The objective of asset management is to optimise the management of assets and to ensure that they fulfil their designated role and requirements. However, effective maintenance cannot prevent the need for the renewal and refurbishment of power stations, within the estimated lifetime.
An important milestone was reached this year with the implementation of working procedures for asset management in accordance with ISO 55001, using software to support the procedures. The next phase will include improvements to working procedures pertaining to condition analyses of structures and equipment in order to facilitate a long-term investment analysis.
A small-scale power station at the Hágöngur Reservoir
A 20 KW hydropower station was constructed by the Hágöngur Reservoir to supply the daily electricity needs of Hágöngur and the Skrokkalda transmitter station. The Skrokkalda transmitter and telecommunication station was set up at the turn of the last century and small diesel engines have supplied the required electricity since then.
The diesel engines at Skrokkalda are owned by the emergency services which have now discontinued their use but the emergency services and Landsvirkjun collaborated with regard to the small-scale hydropower station. Energy requirements have increased with time as a result of increased requirements pertaining to monitoring and supervision. The new hydropower station supports Landsvirkjun’s policy on the environment by decreasing pollution and the likelihood of pollution incidents as a result of oil transport across sensitive land terrain.
Powel Nimbus energy steering system
Landsvirkjun invested in a new production planning system, provided by the Norwegian company Powel at the end of 2012. The system was implemented this year and is called Nimbus. The main role of the new system is the development of planning/estimates for production steering based on client estimates, reservoir status, inflow forecasts and maintenance schedules. Nimbus also stores water and production data as well as facilitating the systematic analysis and forecasting of water management. The new system will improve water utilisation at the power stations and increase the effectiveness of production steering.