Concerted Efforts to Increase Energy Generation
Projected energy demand in Iceland until 2035 from Landsvirkjun and Landsnet, the Icelandic TSO, are harmonious. Landsvirkjun expects an increase in demand by 6.5 TWh during that time, with the current annual energy use of approximately 21 TWh. Furthermore, Landsvirkjun energy demand projections that go further than 2035 are in concordance with projects from Samorka, the Federation of Energy and Utility Companies in Iceland, and Landsnet. However, uncertainty increases with longer-term projections. The problem is that supply will not increase significantly in the coming years, and energy security for households and smaller companies could be volatile in 2024-28. After that, new power stations will hopefully have started energy generation. The Búrfellslundur Wind Farm is planned to commence operations in the last quarter of 2026, the Hvammsvirkjun Power Station in 2028, and the extension of Þeistareykir Geothermal Power Station will be finished around that time. Other energy companies must also be thinking along the lines of increasing generation.
Landsvirkjun has repeatedly warned against this scenario. A primary concern is that households and smaller companies will not be provided with enough energy when demand increases as quickly as has been the case. Commitments for energy to new large end-users, without increased energy generation, can threaten energy security for the public.