Natural Resources


Natural resources are vast in Iceland. Geothermal energy, hydropower and wind power are all utilised by Landsvirkjun to generate energy. The Company is committed to the renewable utilisation of these sustainable resources and considers the environmental, societal and economic impact of all its projects. One of the Company’s key objectives is facilitating the positive impact of its operations. The Company consistently endeavours to increase the efficient utilisation of these natural resources and to minimise the utilisation of non-renewable resources, such as fossil fuels.

Knowledge is the key to progress

Environmental research is a crucial factor in the Company’s operations. It is essential in supporting increased expertise on Iceland’s natural resources and the diverse impact that the Company can potentially have on its environment.

Landsvirkjun carries out extensive research on the ecosystem, geology, meteorological studies, hydrology, glaciers, landscape, archaeology, tourism and many other areas.

Extensive information on the natural environment and the various social factors involved is essential when considering a new power project. If the project becomes a reality, then extensive monitoring is continued, in order to assess if and how Landsvirkjun’s operations are affecting the environment.

  • 1 Glacier monitoring

    Landsvirkjun operates an extensive research and monitoring program for glaciers which provide runoff to the Company’s hydropower plants. The programme is run in cooperation with the Institute of Earth Sciences at the University of Iceland and the Icelandic Meteorological Office. The mass balance of the glaciers is measured on an annual basis, in order to assess surface accumulation and surface ablation. The results show that the glaciers, providing the water resources for Landsvirkjun, have in fact diminished in the last two decades and this is believed to be a direct result of climate change. The increase in glacial melt results in increased runoff to hydro power stations and therefore creates opportunities for increased and improved energy generation. Landsvirkjun is already accounting for ‘climate change impact’ in the development and design of potential power projects.
  • 2 Hydrology

    Extensive knowledge on water flow characteristics is the key to better utilisation of the water resource. Landsvirkjun monitors all factors pertaining to the water cycle, from the moment a water drop hits the earth as precipitation, until it is returned to the sea to begin the cycle again. Analyses show the fluctuations in water flow and the factors influencing these changes. The water flow in rivers increases with high precipitation and long warm summers increase glacial melt.
  • 3 Reservoir monitoring

    Landsvirkjun’s energy reserve is stored in the storage reservoirs of the Company and water surface levels are measured continually. The results form the basis for the management of the water resource and the storage reservoirs, the transfer of energy between different parts of the country and the implementation of contingency plans in the case of unusual water surface level changes. Other monitoring measures are commonplace in Landsvirkjun’s reservoirs, including the erosion of reservoir banks and reservoir shoreline evolution. Bathymetric measurements are conducted in order to monitor the levels of sediment and glacial till deposited in the reservoirs by the glacial rivers and the corresponding changes in reservoir volumes. GHG emissions released when land is submerged are also measured.
  • 4 Dam monitoring

    All of Landsvirkjun’s dams are closely monitored. The condition, movement and any leakage in the bedrock (in close proximity) is monitored. The ground water pressure in the actual dams, in the bedrock underneath them and the groundwater level in the proximity of the dams, is monitored. These data are collected annually and the overall status of the dams is assessed.
  • 5 Discharge

    Extensive knowledge with regard to the discharge below the hydropower stations is essential as the discharge from the stations affects both humans and wildlife, in and around the rivers. Landsvirkjun has carried out thorough research on the discharge beneath Írafoss in the Sogið area in order to secure salmon migration in the river.
  • 6 Meteorology

    Meteorology has a significant impact on the water flow within the water resources utilised by Landsvirkjun, for energy generation. Landsvirkjun owns and operates numerous weather monitoring stations in the highland areas. They monitor air temperature, air pressure, wind speed, precipitation and sunlight. The results are submitted to the national meteorological database and to the Icelandic Meteorological Office, where they are further utilised for meteorological forecasts and as real time information on weather conditions. The results are therefore not only used by Landsvirkjun but also by the entire country.
  • 7 Groundwater monitoring

    Groundwater is closely monitored by Landsvirkjun at all of their power stations. The development of groundwater within geothermal areas is particularly significant and can indicate the need for mitigating action, in the case of utilisation affecting the groundwater. Results from the monitoring systems in the Mývatn area have so far shown that geothermal utilisation at Bjarnaflag has not affected the groundwater flow and water quality in Lake Mývatn.
  • 8 Seismic Activity and land mass changes

    Landsvirkjun monitors activity in geothermal areas by using a powerful network of seismic sensors and GPS monitoring systems. This enables the Company to recognise the layout of fractures in the subsurface, elevation changes, tectonic activity and volcanic activity. This information is also crucial in supporting successful borehole drilling in the area. The fact that subsidence in the Krafla area has been measured at 10cm, over the course of two decades, is a clear example of the value of such information.
  • 9 Emissions

    Emission records for the geothermal stations are kept and published, Landsvirkjun has also set up three hydrogen sulphide monitoring stations in Reykjahlíð, the results of which can be accessed in real time via the Landsvirkjun website.
  • 10 Geothermal well monitoring

    Geothermal wells are monitored regularly at Landsvirkjun’s geothermal stations. Well temperature logs, pressure logs and the chemical composition of geothermal fluid are analysed as these provide information on the energy content and quality of the geothermal reservoir. Amongst other things, these observations have shown changes in the steam composition from the Krafla Geothermal Station, since the end of the Krafla Fires in 1984, where the level of carbon dioxide in the steam has decreased substantially.
  • 11 Noise levels

    The noise from geothermal areas can be decreased by using the correct type of mufflers for boreholes. Landsvirkjun closely monitors the noise levels, within the geothermal areas utilised by the Company in the northeast of Iceland, in order to assess the need for increased noise reduction measures and to monitor those already in place. Landsvirkjun is committed to keeping noise levels in areas close to popular tourist spots at the maximum noise level recommended for inhabited areas, that is 50db (A). The maximum noise level for energy production areas is 70dB (A).
  • 12 Reindeer

    The distribution and number of reindeer in the east of Iceland, in the Snæfellsöræfi wilderness, is monitored: in Brúaröræfi, Vesturöræfi, Fellum, in Múli and Hraun. Reindeer numbers are estimated via basic counting measures and aerial photographs of the area. The EIA conducted for the Kárahnjúkar Hydropower Station predicted changes to the distribution and number of animals. However, the affects were measurably less than initially predicted. Ongoing monitoring will show the long-term effects of the power project on the reindeer population.
  • 13 Birdlife

    Landsvirkjun’s operations can have a diverse effect on birdlife. The construction of reservoirs and changes to the course of the river channel can affect their habitat. New roads, transmission lines, wind turbines and other manmade structures can also disturb the population. Research has shown, amongst other things, that the Hálslón Reservoir did not cause a decrease in the Pink- footed Goose population in the area, despite a reduction in grazing land. However, the decrease in the Long- tailed Duck could be attributed to increased turbidity in the river and water in the Hálslón Reservoir. Landsvirkjun is involved in monitoring birdlife in all current and new areas of operation, in order to better understand the effects on birdlife.
  • 14 Freshwater ecology

    Hydropower stations can have a significant impact on fish and other river biota. Landsvirkjun closely monitors river biota in all areas of operation in order to implement timely mitigation measures in the case of any measurable changes. Monitoring the fish population is mainly threefold: the analysis of fishing data to acquire information on changes to the fish stock, net fishing data to acquire information on the condition, diet, maturity and size distribution of fish and finally juvenile counts to acquire information on the density and recruitment of juveniles. Results in the Þjórsá area have shown that the construction of the power station and the resulting changes to water flow have improved conditions for the salmon population, thus supporting its growth.
  • 15 Land reclamation and re-forestation

    Landsvirkjun has been involved in the extensive land reclamation and re-forestation of the areas surrounding their power stations since 1968. The aim of land reclamation is to reinstate land quality, reduce disturbance to vegetated areas and stop soil erosion and vegetation destruction. Increased knowledge within the field has emphasised the importance of soil preservation as the cycle and preservation of nutrients within the soil is the foundation for all life. Increased knowledge on climate change has also inspired land reclamation efforts with carbon binding measures in mind. Landsvirkjun has been independently responsible for these projects and has also been working in cooperation with the Iceland Forest service, the Soil Conservation Society of Iceland, forestry associations and local residents. Landsvirkjun has been involved in specific research projects, with regard to carbon binding via land reclamation and re-forestation since 2012.

Hydropower provides Landsvirkjun with its largest resource for generating energy. Geothermal power provides 4%.

Research monitoring initially focuses on potential mitigation measures, implemented to minimise the impact of construction and development. Once the construction stage is completed and operations begin then research monitoring focuses on particular environmental aspects. However, the effectiveness of mitigation measures is monitored to assess the need for any further action.


The natural energy of rivers

Landsvirkjun closely monitors hydrology in all areas of research and operation. The objective is to minimise any negative impact on the environment and to increase expertise and knowledge of the natural resource in question. Landsvirkjun conducts research on the glacial resource, weather and water systems, to monitor any long-term changes that could affect the water resource and the environment. In 2013, the total energy generation from hydropower was 12,337 GWh.

The winter and summer levels of glacial melt are measured in 23 monitoring stations in the Langjökull Glacier and 50 to 60 stations in the Vatnajökull Glacier.

Hydropower stations are operated with the aim of utilising the natural resource in the most efficient manner possible. This is mainly achieved by steering the water flow. This ensures that the water resource is fully utilised and can also prevent fluctuations in water flow and rapid changes to the water level in the reservoirs which can negatively affect the environment.

Meteorological conditions are a key factor in hydropower as the natural water cycle is utilised to generate electricity. The hydropower system relies on glacial meltwater that flows into the glacial rivers during the summer period. This water fills the reservoirs which is then utilised during the winter period.

In 2013, the water supply for the reservoirs was unlike that of previous years and the water supply for the generation of electricity was therefore less. Reservoir levels were low during the spring and the summer was cold and dry. Approximately 600 Gl (approx. 13%)of water was needed to fulfil the Company’s needs and the remainder of the year proved to be difficult as a result of the reduced water supply.

Water flow to the stations is steered to efficiently utilise the water resource and to reduce any negative impact to the environment. Sand encroachment was a problem at Hálslón for the first time in 2013 and sand trenches were excavated around the reservoir. These proved useful this year as they trapped substantial amounts of sand.

In 2013, Landsvirkjun began cooperation with stakeholders in the tourism industry with regard to the water flow in the waterfalls in Fljótsdalur.

Water was sourced from the Ufsarlón Reservoir due to the unusually low water level at the Hálslón Storage Reservoir. This measure required cooperation with stakeholders in the tourism industry with regard to the water flow in the waterfalls in Fljótsdalur. Organised tours of the waterfalls took place for the first time and cooperative efforts were successful.


Energy from the depths of the earth

The sustainable and responsible utilisation of geothermal resources is one of Landsvirkjun’s guiding principles. The Company’s geothermal utilisation projects are developed in phases to allow the geothermal reservoir to adapt. In 2013, approximately 5,634 tonnes of steam was utilised to generate 500.5 GWh of electricity.

Re-injection measures began at Krafla in 2002. These measures have reduced the environmental effects of geothermal utilisation, at the surface level, supporting the more effective utilisation of the geothermal reservoir.

Extensive monitoring and research is carried out in high temperature areas utilised for geothermal utilisation. Assessing the capacity of these systems ensures utilisation in balance with the inflow of groundwater into the system. The status of the geothermal reservoir and geothermal wells is extensively monitored and the chemical composition of geothermal fluid is regularly measured.

Utilisation of the geothermal energy resource

Quantity of steam and water utilised for electricity generation between 2009 and 2013, as well as the quantity of separated water re-injected over the same period.


The utilisation process produced 5,190 thousand tonnes of condensed and separated water and 3,067 thousand tonnes were re-injected back into the geothermal reservoir. The amount of water in geothermal fluid has been stable for the last few years but the amount of steam has decreased and the decrease in the output of the wells is the main reason for this development.


A reduction in carbon dioxide emissions

Landsvirkjun has declared its intention of becoming a carbon neutral company. The Company is systematically working towards reducing its carbon dioxide emissions.

Diesel consumption increased by 12%, mostly due to the operations of the Project Planning and Construction Division and the Research and Development Division which varies between years according to the number and scale of projects.

Landsvirkjun uses fossil fuels to operate vehicles, machinery and equipment. The amount of purchased fuel and fuel consumption in vehicles hired by Landsvirkjun employees is registered in Landsvirkjun’s green accounts. The objective is to reduce GHG emissions by decreasing fossil fuel consumption in the Company’s operations.

Landsvirkjun’s total consumption of fossil fuels (diesel and petrol) increased from 266 thousand litres to 284 thousand litres (by 7%) in 2013. This is mostly due to the operations of the Project Planning and Construction Division and the Research and Development Division which varies between years according to the number and scale of projects.

Fossil fuel consumption

Total consumption of diesel oil and petrol in Landsvirkjun’s operations between 2009 and 2013.