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Electricity generation in Iceland could provide a model for other countries. Iceland's population is sparsely distributed and the country’s sustainable, renewable energy generation and electricity network has been built to accommodate these factors. Landsvirkjun has for almost half a century been the backbone of this network.

Iceland's increasing tourist population has shown particular interest in renewable energy generation, especially hydropower and geothermal power stations which are rare elsewhere. Foreign visitors are aware of the extensive resources here and speculate on how we are able to harness these to create value and therefore improve living standards for the population.

Various surveys have confirmed without a doubt that renewable energy generation is part of the attraction of Iceland to foreign visitors. Iceland's image is intertwined with the image of renewable, clean energy. The influx of tourists to Landsvirkjun’s visitor centres and other energy companies is also clear evidence of this.

The international community agrees that the fight against climate change is one of the greatest challenges of modern times. An agreement was reached on the measures needed to keep global warming within certain limits at the recent Climate Change Summit in Paris.

One of the most difficult challenges faced by the world in the fight against climate change is the task of converting from fossil fuel based energy production to renewable energy sources. Most tourists visiting Iceland are accustomed to buying electricity produced by burning fossil fuels- gas, oil and coal. They understand the urgent need to produce electricity using methods that do not emit greenhouse gases into the atmosphere and thus work against the ongoing climate challenge.

Iceland must continue to use its natural resources wisely and with foresight.

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Landsvirkjun does not build power stations, dams and other structures just for the sake of doing so. Our goal is to have a positive impact on the standard of living in Iceland by utilising individual energy resources in a responsible manner.

Our energy resources are not inexhaustible. We must utilise them in the most efficient manner possible, achieving maximum value from the resources that we have made the careful decision to use. In other words, we must increase the productivity of energy production.

Landsvirkjun is on the right track. The Company’s revenue has increased in recent years and the goal is to achieve a profit that is comparable to our sister companies in the Nordic countries. The financial results this year confirm that this is achievable as we have been successful, despite extremely challenging conditions, which can, amongst other things, be attributed to lower aluminium prices. The Company’s performance is still somewhat linked to aluminium prices but this connection will be significantly reduced in the coming years.

This operational development has been made possible by the improved utilisation of the power system and the re-negotiation of contracts, which have brought prices closer to the norm elsewhere. Electricity prices for energy intensive industry are no longer the lowest in Iceland which is a welcome development, but we must also remain competitive.

Increased profitability and an improved debt status could mean a significant increase in dividend payments within a few years. Plans have been made to establish a stability fund into which dividends would be paid and which could lay the foundation for prosperity, improving Iceland's future.