Iceland’s Landsvirkjun to install 28 wind turbines

By Elías Thorsson November 28, 2024
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Samið um kaup á 28 vindmyllum á 20 milljarða. Ásbjörg Kristinsdóttir, framkvæmdastjóri Framkvæmda hjá Landsvirkjun, Uli Schulze Südhoff, framkvæmdastjóri viðskiptasviðs Enercon, Hörður Arnarson, forstjóri Landsvirkjunar og Steinunn Pálmadóttir, lögmaður hjá Landsvirkjun.
Ásbjörg Kristinsdóttir, director of construction at Landsvirkjun, Uli Schulze Südhoff, business director of Enercon, Hörður Arnarson, CEO of Landsvirkjunar and Steinunn Pálmadóttir, laywer for Landsvirkjun at the signing of the deal. (Landsvirkjun)

Landsvirkjun, Iceland’s national power company, has announced an agreement with German wind turbine manufacturer Enercon to procure, install and operate 28 wind turbines for the Búrfellslundur wind farm near Vaðalda in southern Iceland. This development follows the Icelandic government’s recent approval of the country’s first wind farm, marking a significant advancement in Iceland’s renewable energy sector.

The first 14 turbines are slated for construction in early 2026, with commissioning expected later that year. The entire wind farm is projected to be fully operational by the end of 2027.

The procurement process began in January, contingent upon necessary permits and planning approvals, which were secured in October. Of the three manufacturers that participated in the bidding process, Enercon’s proposal of €140 million (approximately ISK 20 billion) was selected as the most favorable.

Enercon has previously supplied turbines for Landsvirkjun’s pilot projects at Hafið since 2013 and for installations in Þykkvabær. The agreement includes the design, production, transportation, installation, and testing of the 28 turbines, followed by a service contract extending for at least 15 years.

Preparatory work, including road construction and foundation building at the Vaðalda site, is set to begin next year, with tenders for these projects expected by the end of 2024. Additionally, Landsvirkjun plans to establish a service facility for the wind farm in Hellu.

This project aligns with ongoing debates in Iceland about diversifying its energy production beyond hydropower and geothermal sources. With nearly all of Iceland’s energy currently derived from these two renewable resources, the addition of wind energy represents a significant step toward broadening the country’s energy mix. This diversification is seen as essential for enhancing energy security and meeting future demand.