Successful Adjustment to Icelandic Conditions
European countries consider the unique electricity system- and markets developed in Iceland quite enviable. The isolated Icelandic grid, with 100% renewable energy, is one of its kind worldwide. Indeed, such a system poses various challenges; however, when the main properties of energy systems are observed, it is clear that Iceland is probably in a better position than all other countries when it comes to:
- Utilising renewable energy
- Low and stable energy prices to the public and secure delivery
- Excellent capacity utilisation
- Competitive operations environment for large end users
- Satisfactory rate of return from energy generation
All this has been made possible by adjusting an active business environment to Icelandic conditions. By dividing the market into two parts, households and smaller companies have enjoyed delivery security for fair and stable prices. Meanwhile, a competitive business environment has been created for large end users by offering long-term power purchasing agreements, leading to predictability in operations and flexibility.
Demand predictability for the coming years and expertise in natural resources are essential to operate a system commanded by nature. One example is the extraordinary Icelandic approach, where utilisation is maximised by selling curtailable power to customers who can use less energy when needed.