Landsvirkjun
Iceland's state-owned national power company and largest electricity generator.
Last updated August 22, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Landsvirkjun is Iceland's national power company and the country's largest electricity generator. It was established on 1 July 1965 by the Icelandic state and the City of Reykjavík to develop and operate major electricity-generation assets. At its creation, Reykjavík transferred three power stations on the Sog River to the new company. Landsvirkjun soon began work on Búrfell, a major hydropower station that became one of the central assets in the development of Iceland's modern electricity system. The company's core business is the generation and sale of high-voltage electricity, with hydropower forming the foundation of its portfolio and geothermal generation providing an additional source. Landsvirkjun has developed or operated generation facilities in several parts of Iceland, including hydropower stations associated with the Þjórsá, Tungnaá, Blanda, Laxá and Jökulsá á Fljótsdal river systems, as well as geothermal generation at Krafla. Its generation infrastructure has supported Iceland's electricity supply and the country's energy-intensive industrial economy. Ownership evolved during the company's first decades. In 1983, the municipality of Akureyri acquired a 5% interest and transferred three Laxá River hydropower stations into Landsvirkjun. In 1985, the Krafla geothermal power station came under Landsvirkjun's ownership. Following changes to Iceland's electricity framework in 2005, the company's transmission division was separated into Landsnet, an independent limited company and Landsvirkjun subsidiary responsible for operating the high-voltage transmission system and managing the national electricity system. In 2007, the Icelandic state acquired the ownership interests previously held by Reykjavík and Akureyri, making Landsvirkjun fully state-owned. Although generation remains the company's principal activity, the Landsvirkjun group has also included businesses connected with transmission, telecommunications, insurance and energy expertise. Subsidiaries and associated operations have included Landsnet, Landsvirkjun Power, Orkufjarskipti, Icelandic Power Insurance and Hraunaveita. Landsvirkjun Power applies the company's technical knowledge to energy-related consultancy projects in international markets, while the other group activities support transmission, communications, insurance and project-specific functions. Landsvirkjun has also explored wind power alongside its established hydroelectric and geothermal portfolio. In December 2012 it installed two wind turbines at Hafið, within the Búrfell Power Station construction area in southern Iceland. The turbines had combined installed capacity of 2 MW and represented an operational wind-power experiment for the company. Overall, Landsvirkjun is positioned as a public infrastructure provider rather than a consumer-facing electricity brand: its importance lies in owning and operating generation assets, supplying electricity to the Icelandic market, and maintaining technical capabilities associated with renewable power systems.
History
Landsvirkjun was founded on 1 July 1965 as a joint undertaking of the Icelandic state and the City of Reykjavík. Reykjavík contributed three existing power stations on the Sog River. The new national power company was created to develop Iceland's electricity resources and to produce and distribute high-voltage electricity. One of its first major undertakings was the construction of Búrfell hydropower station, which established a foundation for subsequent expansion of the national generation system. During the following decades Landsvirkjun built a substantial hydroelectric portfolio. Its facilities included Búrfell, Sigalda, Hrauneyjafoss, Blanda, Sultartangi, Vatnsfell and Fljótsdalsstöð. The company also broadened its generation base beyond the original Sog River assets. In 1983, the municipality of Akureyri acquired a 5% interest in Landsvirkjun and transferred three hydropower stations on the Laxá River into the company. This made Akureyri the third owner. Two years later, in 1985, the Krafla geothermal power station became part of Landsvirkjun's ownership structure. For much of its first forty years, Landsvirkjun combined electricity generation with transmission and distribution-related responsibilities. Iceland's electricity-sector reforms changed that structure. Under a new electricity act in 2005, Landsvirkjun's transmission division was reorganized as Landsnet, an independent limited company that remained a subsidiary of Landsvirkjun. Landsnet took responsibility for the country's high-voltage transmission network and for managing the Icelandic electricity system, while Landsvirkjun continued to focus principally on generation and the sale of electricity. Ownership was consolidated in 2007. The Icelandic state acquired the interests held by Reykjavík and Akureyri, leaving Landsvirkjun fully owned by the state. This reinforced its role as a national infrastructure company rather than a municipality-linked partnership. The company operates generation assets across several regions of Iceland and has remained strongly associated with renewable electricity, particularly hydropower and geothermal energy. Landsvirkjun has also maintained activities beyond direct generation. Landsvirkjun Power uses the company's energy expertise for consultancy projects in international markets. Other group entities have covered electricity transmission, telecommunications, captive insurance and project-specific infrastructure functions. The group has therefore combined a domestic public-utility role with selected technical and support businesses. In December 2012, Landsvirkjun installed two wind turbines at Hafið, in the construction area of Búrfell Power Station in southern Iceland. With a combined capacity of 2 MW, the turbines marked an expansion of the company's practical experience into wind power. The company's main identity, however, continues to rest on its large hydroelectric and geothermal generation base and its role in supplying Iceland's electricity system.
- 2012
Wind turbines are installed at Hafið
[1]Landsvirkjun installs two wind turbines near Búrfell with combined installed capacity of 2 MW.
- 2007
The Icelandic state becomes sole owner
[1]The state acquires the ownership interests held by Reykjavík and Akureyri, making Landsvirkjun fully state-owned.
- 2005
Transmission division becomes Landsnet
[1]Electricity-sector reform separates Landsvirkjun's transmission division into Landsnet, an independent limited company and subsidiary.
- 1985
Krafla geothermal station enters Landsvirkjun ownership
[1]The Krafla geothermal power station becomes part of Landsvirkjun's generation portfolio.
- 1983
Akureyri becomes a third owner
[1]Akureyri acquires a 5% share in Landsvirkjun and transfers three Laxá River hydropower stations to the company.
- 1965
Landsvirkjun is established
[1]The Icelandic state and the City of Reykjavík establish Landsvirkjun on 1 July. Reykjavík contributes three Sog River power stations.
- 1965
Construction begins on Búrfell
[1]Shortly after its creation, Landsvirkjun begins construction of the Búrfell hydropower station, one of the company's foundational generation projects.
Products and positioning
State-owned national electricity generator and renewable-energy infrastructure operator
Electricity generation
Hydroelectric power
Hydropower is the central component of Landsvirkjun's generation business. The company developed and operated stations including Búrfell, Sigalda, Hrauneyjafoss, Blanda, Sultartangi, Vatnsfell and Fljótsdalsstöð, together with assets associated with the Sog and Laxá river systems. These facilities use Iceland's substantial water resources to produce electricity for the national power system and energy-intensive customers.
Electricity generation · 1985
Geothermal electricity
Landsvirkjun's geothermal portfolio complements its hydropower assets. The Krafla geothermal power station came under the company's ownership in 1985. Geothermal generation gives the company access to another of Iceland's major renewable-energy resources and supports diversification within its national electricity-generation role.
Electricity generation · 2012
Wind power
In 2012 Landsvirkjun installed two wind turbines at Hafið, in the Búrfell Power Station construction area in southern Iceland. The turbines had total installed capacity of 2 MW. The project represented a practical wind-power initiative within a generation portfolio historically dominated by hydropower and geothermal energy.
Professional services
Energy consultancy
Through Landsvirkjun Power, the group applies knowledge gained from developing and operating Icelandic power infrastructure to consultancy assignments in international energy markets. The activity extends the company's technical expertise beyond domestic electricity generation.
Brand decisions
2012
Launch a wind-power installation at HafiðProduct launchBackground
Landsvirkjun sought practical experience with wind generation alongside its established hydroelectric and geothermal operations.
Action taken
The company erected two wind turbines in the Búrfell Power Station construction area, with combined installed capacity of 2 MW.
Aftermath
The installation added a wind-power component to Landsvirkjun's renewable-generation activities.
2007
Consolidate ownership under the Icelandic stateStrategyBackground
Landsvirkjun had previously been jointly owned by the Icelandic state, Reykjavík and Akureyri.
Action taken
The Icelandic state took over the shares held by Reykjavík and Akureyri.
Aftermath
Landsvirkjun became fully state-owned and operated as Iceland's national power company under a unified ownership structure.
2005
Separate transmission operations into LandsnetStrategyBackground
Iceland's electricity-sector legislation changed the institutional structure of the power industry and required transmission responsibilities to be separated from generation activities.
Action taken
Landsvirkjun transferred its transmission division into Landsnet, an independent limited company and subsidiary responsible for the high-voltage grid and electricity-system management.
Aftermath
Landsvirkjun's principal role became more clearly centered on electricity generation and supply, while Landsnet operated the national transmission system.
Recent events
Landsvirkjun announces electricity delivery cuts to large users[3]
Reported:
Landsvirkjun announced on Monday that it would immediately reduce electricity delivery to large users whose short-term contracts permit limits, including fish meal factories, data centers, and aluminum smelters. The article says the cuts were initially planned for January and gives reductions for the affected user groups.
Weekdays and relative dates follow the original report; their exact calendar dates have not been verified.
Sources3 sources
Cite this profile: Cite the canonical profile. /brand-wiki/landsvirkjun · Editorial policy · How profiles are compiled