Reykjavík Energy's Ambitious Investment Plans to 2030
Future Investments in Reykjavík Energy
Exciting prospects lie ahead for Reykjavík Energy Group as it embarks on an ambitious investment strategy. The consolidated financial forecast anticipates a whopping ISK 245 billion investment spanning the years 2026 to 2030. This translates to an impressive average of nearly ISK 50 billion each year, aimed at elevating the energy sector within Iceland.
Boosting Competitiveness in Energy
"Our mission at Reykjavík Energy is to enhance Iceland's competitiveness by expanding our energy production capabilities," shares Sævar Freyr Þráinsson, the Group's CEO. This commitment goes beyond creating more energy for residential and commercial needs; it extends to connecting additional households to our eco-friendly utility systems while embracing innovative technologies for continuous upgrades.
Moreover, Þráinsson highlights the forecast’s role in bolstering society’s resilience against the challenges posed by climate change. With a focus on sustainability, Reykjavík Energy aims to adapt to new environmental realities while fostering growth opportunities within the industrial sector.
Emerging Industrial Opportunities
The CEO notes an increasing wave of interest from businesses keen to establish operations in Iceland, drawn by the region's green energy resources and initiatives for carbon capture. "Several locations throughout Iceland have been designated as green industrial parks, poised to be centers of sustainable industrial activity. We anticipate that supportive government policies will help realize these opportunities," says Þráinsson. This forward-thinking approach aims to leverage Iceland's distinctive advantages while reinforcing the sustainability of local industries.
Positive Growth Forecast
Looking ahead, the forecast presents a rosy picture for Reykjavík Energy's financial outlook:
- Annual revenues are projected to soar from ISK 70.9 billion in the current outlook to ISK 96.0 billion by 2030, reflecting a remarkable growth of 35%.
- Operating expenses are expected to rise modestly—from ISK 30.9 billion to ISK 35.6 billion, indicating a 15% increase.
- Cash flow from operations is set to escalate from ISK 32.2 billion in the current outlook to ISK 42.1 billion by 2029, illustrating a significant potential growth of 31%.
- The equity of Reykjavík Energy is projected to grow from ISK 262 billion at the end of 2024 to ISK 341 billion by the end of 2029, marking a healthy increase of 30%.
This comprehensive forecast has received backing from the Board of Directors of Reykjavík Energy, and the supporting subsidiary boards have also approved these optimistic predictions. The financial strategy is set to align with the City of Reykjavík's consolidated financial plan, ensuring cohesive growth across various sectors.
Commitment to Sustainability
Furthermore, Reykjavík Energy has recently achieved an “outstanding” sustainability rating of A3 in an ESG risk assessment conducted by the renowned rating agency Reitun, which evaluates performance based on environmental, social, and governance criteria. The agency's commentary noted: "Reykjavík Energy excels in our ESG assessment, consistently meeting growing criteria over recent years."
Reykjavík Energy additionally embraces its role as an issuer of green bonds, underscoring that its sustainable initiatives lead to more favorable financing options—a significant advantage in today’s market.
For more information, please contact:
Snorri Hafsteinn Þorkelsson
CFO
Snorri.Hafsteinn.Thorkelsson@orkuveitan.is
Frequently Asked Questions
What is the investment plan for Reykjavík Energy?
Reykjavík Energy plans to invest ISK 245 billion from 2026 to 2030, averaging ISK 50 billion annually.
How will these investments impact energy production?
These investments aim to enhance energy generation capabilities for households and businesses while connecting more homes to eco-friendly systems.
What growth is projected for Reykjavík Energy's revenues?
Annual revenues are expected to grow from ISK 70.9 billion in 2025 to ISK 96.0 billion by 2030, representing a 35% increase.
How does Reykjavík Energy rate in sustainability?
Reykjavík Energy received an A3 rating or “outstanding” in ESG assessments, reflecting its strong commitment to sustainability.
Who can I contact for further inquiries?
For inquiries, you can reach out to Snorri Hafsteinn Þorkelsson, CFO of Reykjavík Energy, via email.
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