Landsvirkjun’s future vision is to be a progressive, international energy company in the field of renewable energy. We want to be amongst the best in generating and selling energy.

Our values are prudence, progressiveness and reliability.


Landsvirkjun’s role

Landsvirkjun is a state-owned company and our role is to consistently endeavour to maximise the potential yield and value of the natural resources we have been entrusted with, in a sustainable, responsible and efficient manner.

Landsvirkjun's role is
to maximise the potential yield and value
of the natural resources it has been entrusted
with in a sustainable, responsible and efficient manner
Efficient electricity production and development
Operations are built on a solid infrastructure, characterised by efficiency, economy and effective risk management in operations and investments. This is reflected by the Company's certified management system designed to ensure that the Company fulfils declared overall plans and commitments.
A diverse client base
We create value by fulfilling the needs of our diverse client base. Our relationship with our clients is based on a solid foundation and regular, mutual communication.
Connecting with the European energy market
We see the European energy market as our competitive market. We strive to attract investment from energy intensive industries and services and take an active part in assessing the opportunities offered by connecting to the European electrical network.
Inspiring and promoting expertise and talent in the LV workforce
We guarantee our employees a good working environment that promotes safety, health, knowledge dissemination and the development of individual expertise and talent. We discuss the results of our performance fairly and openly and seek out ways to continuously improve our performance.
Encouraging unity & support from stakeholders via open and clear communication
We are committed to achieving widespread consensus on the balance between environmental, social and profitability issues in our operations. The Company wants to contribute to the sustainable development of society; it is a leader in environmental matters and is committed to social responsibility. The Company fulfils external requirements, government, laws and regulations, and other requirements made with regard to its operations.

The Company wishes to contribute to the sustainable development of society. It is a leader in the handling of environmental issues and is committed to its social responsibility.


Landsvirkjun’s Management System

Landsvirkjun operates a management system that keeps track of Company policy and procedures by integrating the management of the Company at its headquarters and power stations into one coherent, cross-functional system. Landsvirkjun’s Management System is certified according to international standards and all employees are expected to adhere to the system.

Our policy objectives provide support in operations and in fulfilling our commitments to our clients, employees and other stakeholders as well as contributing to environmental protection matters The objective is to ensure the reliability of operations in an efficient and secure manner as well as ensuring that both internal and external demands are met and to support continuous improvement via a systematic review and re-evaluation of the performance of the Company.




Social responsibility

Landsvirkjun has always taken its role and responsibilities seriously and has put its Social Responsibility Policy into practice.


The development of the Company over the years has resulted in the creation of new jobs and the increased expertise of employees. We have also always been committed to land reclamation and reforestation.

Landsvirkjun developed a formal policy on social responsibility five years ago and this is reflected in the Company’s focus on the environment and society.

Social responsibility is about creating value for our owners, treating the environment and all natural resources with respect and ensuring that knowledge dissemination and the positive effects of our operations reach society.


Landsvirkjun is a member of the UN Global Compact which creates a global standard for social responsibility. We have committed to implementing the principles outlined by the UN in the areas of human rights, labour, the environment and anti-corruption. 

More information can be found on the UN Global Compact website UN Global Compact.


Landsvirkjun has for decades run an enterprise that goes by the name of “many hands lighten the load”. The initiative offers summer employment to young people between the ages of 16–20 and various organisations can ask them to contribute their work to environmental projects. Forty three organisations utilised the project in 2015. Landsvirkjun employed 155 young adults to carry out these projects and tocarry out necessary company maintenance projects. The initiative is an important contribution to employment opportunities for young adults as it gives them the opportunity to familiarise themselves with the Company’s operations. Sixty university students were also offered various summer positions.


One of the main focuses of 2015 was, amongst other things, the review of Landsvirkjun’s main processes. It is now much easier to analyse Company operations based on objectives, value and risk. Measures are also in place to ensure continuous improvement and the improved functionality of the management system.

An important part of Landsvirkjun’s social responsibility is creating support and consensus amongst stakeholders by encouraging open communication. A number of open meetings were held this year to discuss various matters with regard to operations.

More information on communication matters

Landsvirkjun is committed to fulfilling its role with regard to knowledge dissemination, giving people the opportunity to learn about electricity. The interactive exhibition which opened at the Ljósafoss Hydropower Station this year creates a platform for sharing knowledge with students and other guests. 

More about the interactive exhibition at Ljósafoss



Objectives 2015
Reassessment of Landsvirkjun’s main processes

The Company’s main processes were reassessed in 2015. An emphasis was placed on ensuring continuous responsibility, increased flexibility and the simplification of the Corporate Governance System we adhere to. The outcome of this reassessment is the ability to efficiently analyse all operations within the Company, based on objectives, value and risk as well as facilitating continuous improvement and ensuring the functionality of the management system.

Value chain

Objectives 2015
Implementation of green procurement measures

Landsvirkjun chooses to work with clients and suppliers who are committed to responsible corporate governance.

Landsvirkjun became a founding member of the Green Public Procurement program (VINN) in December, 2014. VINN is a forum for collaboration on green procurement, led by the Ministry for the Environment and Natural Resources. Amendments were made to Landsvirkjun’s procurement processes in 2015 with the aim of increasing the percentage of environmentally friendly goods purchased by the Company. This is the first visible step in ensuring that Landsvirkjun follows green procurement processes which reflect the Company’s stance on environmental matters and social responsibility.

Environmental matters

Objectives 2015
Assessment on the production of alternative fuels from excess energy and geothermal emissions

The project thoroughly assessed the possibility of utilising carbon dioxide emissions from geothermal power stations and excess energy to produce green fuel. A particular emphasis was placed on exploring ways to clean the carbon dioxide from Landsvirkjun’s power stations as this would be a prerequisite for the utilisation of the gas for further processing. Research revealed that this would be technically feasible and achievable at a competitive price although technical adjustments would be required to utilise emissions from the geothermal power stations for this purpose.

Land reclamation around Þeistareykir

Land reclamation projects were carried out in 2015. The projects were supervised by the Soil Conservation Service of Iceland and the Garden Manager for the Norðurþing Municipality. The projects are also carried out in close cooperation with landowners.

Sowing projects were carried out on roadside excavation cavities, quarries and reclaimed areas. Plants were also planted in a lupine covered area within the land reclamation fence area.

Plants were also planted in a lupine covered area within the land reclamation fence area and in excavation cavities closest to Húsavík. A total of 48.2 tonnes of industrial fertiliser was distributed 3.080 kg of seed was sown into land areas. A total of 45,070 plants (mostly birch and larch but also willow) were planted.

A report on the projects in 2015 will accompany the project plans released for 2016.

Reducing emissions from employee transportation and encouraging others to do the same.

In 2015, various projects were developed using the new transport policy guidelines. Electric bicycles were purchased to encourage employees to utilise environmentally friendly transport both in and outside work. They are available for employees to borrow in Reykjavik and Akureyri. Landsvirkjun also offered employees the chance of entering into a transport contract with the Company.

The number of employees who travel to work in an electric vehicle is constantly growing. Charging points were set up in our car park, offering electrical vehicle users access to the best parking spots and free charging throughout the day.

The number of environmentally friendly cars in Landsvirkjun’s fleet increased this year as we now operate six electric cars and two hybrids. Landsvirkjun also joined four thousand other cities, companies, investors and regions who have committed to setting out their emission reduction objectives by registering them with Nazca (Non-State Actor Zone for Climate Action) which aims to speed-up cooperation to respond to climate change. We have now committed to increasing the number of electricity driven cars to 25% of the Company’s fleet by 2020.

Landsvirkjun also took part in ‘Hjólabætum Ísland’ (an initiative to increase safety issues for bicycle users in Reykjavík and neighbouring areas) alongside a number of other companies. This is part of our drive to encourage others to use environmentally friendly transport.


Objectives 2015
Engaging the public in our anniversary year – more open meetings

Ten open meetings were held on matters related to Landsvirkjun’s overall operations. The objective was to inform and to create dialogue with stakeholders on various aspects of energy and social responsibility. Examples of this included meetings on corporate responsibility with regard to climate change, data centers, innovation in the energy sector as well as the Annual Meeting.

Development of sustainability indicators in the north of Iceland

The sustainability project in the north of Iceland was revived in 2015 in cooperation with the municipalities in the area and the University of Akureyri Research Centre. Landsnet, PCC and various interest groups in tourism also became involved.

The Húsavík Academic Center (HAC) was asked to oversee the project and the development of sustainability indicators. The development of these indicators was active in 2015. The aim in 2016 is to consult professionals in the field of environment, economy and society to develop and select sustainability indicators and to subsequently enter into open dialogue with residents and other stakeholders.

The project will continue and proposals for indicators are expected in the middle of 2016.

Dividends paid to owners

At Landsvirkjun, our role is to consistently endeavour to maximise the potential yield and value of the natural resources we have been entrusted with, in a sustainable, responsible and efficient manner. One of the ways 0to fulfil this role is by paying dividends. Landsvirkjun pays annual dividends to its owner, the Icelandic state. The amount differs between years.

Human resources

Objectives 2015
A reassessment of equal opportunity matters at Landsvirkjun and the development of a new action plan on equal opportunities.

A new equal opportunities committee was appointed in 2015 and they submitted their report on the reassessment of our action plan on equal rights. The action plan is designed to ensure the successful follow-up of this particular policy.

A ‘zero’ annual accident rate

Landsvirkjun achieved the important milestone of one million working hours without any accident related absences this year. This is a difficult achievement as safety issues require long- term commitment and there is no end goal. However, there was a significant increase in registered accidents between years. There were 13 accidents involving full-time employees in 2015 compared with 6 incidents in 2014. There were no serious incidents and only one accident related absence which was not serious (the same number as in 2014). The H200 figure is therefore still 0.3. The percentage of absences due to illness or accidents is similar between years.

Knowledge dissemination

Objectives 2015
Create an informative energy exhibition at the Ljósafoss Hydropower Station

Experiencing the wonder of energy

The new interactive energy exhibition “Powering the Future” was formerly launched on the 14 th of August at the Ljósafoss Hydropower Station to commemorate Landsvirkjun’s 50 th anniversary. The exhibition was designed by Gagarín Ltd, Tvíhorf architects and a number of other companies and experts were also involved in its creation. The theme of the exhibition is the phenomenon of electricity itself, its effect on the individual and society as a whole.

The exhibition is interactive with an emphasis on play and experience where the nature and characteristics of electricity are shown in multiple forms and guests are led through the world of electricity in new and creative ways. Guests are also introduced to the renewable and sustainable energy generation methods used by Landsvirkjun such as hydropower, geothermal energy and wind energy

Visit the Ljósafoss Hydropower Station and experience energy in a new way!

To encourage innovation within the energy industry by supporting seed stage, energy related business ideas

One of Landsvirkjun’s key responsibilities with regard to social responsibility is knowledge dissemination and supporting innovation and new expertise within society. Landsvirkjun supported the investment program Startup Energy Reykjavík (SER) for the second year running. SER is a seed stage investment program which strives to increase value creation and support for energy related companies.

For more information please see:

Fourteen start-up businesses have gone through SER’s business centre, and nearly all of these are still in operation. Companies associated with the initiative have secured over half a billion in grants and finance during this period, which is a tremendous achievement. Landsvirkjun plans to continue its support for the project in 2016. Landsvirkjun will also continue to monitor certain ‘performance measures’ by monitoring the number of companies in the SER initiative still in business a year after the end of the SER program and the further financing of SER start-ups one year after the end of the program.

Increasing public access to research

Landsvirkjun has in recent years improved public access to research reports by publishing them electronically through the Gegnir (Library Consortium) website.

Most of the reports published on the Company website in 2015 have also been made available on the Gegnir website. A quarterly review is carried out to ensure that all the reports released on the Company website are also registered on the Gegnir website. Any discrepancies are rectified.