How much does Iceland s energy storage products cost

What factors drive electricity prices in Iceland?

In this chapter, we outline the electricity supply, demand, market design, and present the main factors driving electricity prices in Iceland. Over decades, there has been a significant growth of the net electricity consumption in Iceland, reaching the level of 19.28 TWh in 2018.

Does Iceland have a competitive electricity price?

Electricity prices for energy intensive industries in Iceland are relatively competitive at a global level. This is mainly due to the abundant and natural energy sources in Iceland, such as hydro power and geothermal energy. Only a few countries or regions in North America or Europe can benefit from similar energy sources.

How much electricity does Iceland use?

In 2015, the total electricity consumption in Iceland was 18,798 GWh. Renewable energy provided almost 100% of electricity production, with about 73% coming from hydropower and 27% from geothermal power. Most of the hydropower plants are owned by Landsvirkjun (the National Power Company) which is the main supplier of electricity in Iceland.

Is Iceland's energy supply good?

Iceland's energy supply is very cost-competitive due to its almost 100% carbon-free electricity generation and high potential of natural energy resources.

What is the average network cost in Iceland?

The average network cost in Iceland, based on all consumption categories in the Eurostat database, is around 19 USD/MWh and was the cheapest in comparison to the average network costs of other European countries in 2018. However, detailed network costs for Iceland are only available for consumption up to 20 GWh.

Does cross-border trading affect Iceland's electricity price?

Iceland’s electricity price is not influenced by cross-border trading, i.e. neither the EU Emission Trading System (ETS) nor changes in load or generation problems of neighboring countries affect electricity prices.