raforkumarkaðurinn

Raforkumarkaðurinn refers to the electricity market in Iceland. It is a complex system that governs the production, transmission, distribution, and sale of electricity. The market is primarily characterized by the dominance of renewable energy sources, with geothermal and hydroelectric power being the cornerstones of Iceland's energy generation. This reliance on natural resources has led to a unique and largely sustainable electricity sector.

The Icelandic electricity market is structured with distinct entities responsible for different stages of the supply chain. Landsnet is the transmission system operator, managing the high-voltage grid that connects power generation sites to distribution networks. The distribution companies, such as Orka náttúrunnar and HS Orka, are responsible for the local delivery of electricity to consumers. The generation of electricity is carried out by various companies, some state-owned and others privately operated, all contributing to the national grid.

Consumers in Iceland can choose their electricity supplier, although the generation mix is largely determined by the available renewable resources. The market aims to ensure reliable and affordable electricity while also promoting efficiency and environmental sustainability. Regulations and policies are in place to govern competition, pricing, and the integration of new energy technologies. The unique geographical and geological characteristics of Iceland significantly shape its electricity market, making it a notable example of a renewable energy-focused economy.