Priority Dispatch Not Curtailed
Landsvirkjun has never curtailed priority power supply during its approximately 60 years as the National Energy Company, and there are no indications of that changing in the coming winter. We have always been careful not to promise more priority power supply than we know we can dispatch, even in bad water years. However, curtailments have had to be made in recent years, but only when stipulated in the power purchasing agreements, which have a lower tariff than priority power supply.
In simple terms, priority power supply is the electricity that energy generators are committed to dispatching to customers, regardless of the water budget, maintenance, or other foreseeable factors in operations.
It is evident that more energy generation in Iceland is necessary, a sentiment echoed by many. Landsvirkjun has been proactive in addressing this need, repeatedly raising the issue. Finally, we can begin the construction of the Hvammur Power Station and the wind farm Búrfellslundur. When energy generation is insufficient, curtailment may be necessary for customers with such stipulations in their power purchasing agreements. Meanwhile, it is not always possible to ensure energy for some companies, even when they could have used more energy than is available. Nevertheless, suggesting curtailment is imminent for priority power supply is irresponsible.
Does this mean that curtailment of priority power supply is impossible? No, we cannot make such a definitive statement, as in the event of a natural catastrophe, Landsvirkjun might be unable to generate energy. However, only unavoidable external occurrences (force majeure) could lead to curtailment of priority dispatch.
