Raforkukerfið

Raforkukerfið is the Icelandic term for the country’s electric power system, encompassing production, transmission, distribution, and metering that supply electricity to homes, businesses, and industry. The system is largely self-contained and is operated and regulated within Icelandic authorities, with Landsnet acting as the transmission system operator.

Generation in Iceland is dominated by renewable sources, primarily hydro and geothermal energy. The state-owned Landsvirkjun operates the largest hydropower plants, while geothermal plants such as Hellisheiði and Nesjavellir contribute a significant share of baseload power. A combination of municipal and private producers, including HS Orka and Orkuveita Reykjavíkur, supply electricity to regional grids. Total installed capacity is several gigawatts, with annual production in the tens of terawatt-hours, most of which comes from renewable resources.

The transmission network carries high-voltage electricity from generation sites to load centers across the country. Landsnet operates the national HV grid, which mainly uses 132 kV and 220 kV lines and substations to connect generation with distribution networks. The distribution networks deliver power to households, businesses, and industry through regional utilities and municipalities.

The Icelandic energy sector is regulated by Orkustofnun, the National Energy Authority, and by market rules that align with Iceland’s membership in the European Economic Area. The electricity market is liberalized, with a wholesale market and regulated retail aspects, under environmental and safety standards appropriate for Iceland’s unique geography and volcanic activity.

As of recent years, Iceland’s Raforkukerfið remains largely islanded, with few permanent interconnections to neighboring grids. There have been long-standing discussions about cross-border links, but no persistent continental interconnector is in operation. The system continues to emphasize abundant renewable generation, grid resilience, and sustainable supply.