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Operator Municipal Government Orkustofnun, the National Energy Authority 65 year lease for land Utilization License HS Energy Reykjanes Power Station PPA PPA Norðurál, aluminum plant Landsvirkjun, generation company FIGURE 6.1 Structure of the Reykjanes Power Station Alterra 67 percent ownership Icelandic Pension Funds 33 percent ownership Sources: Alterra Power Corp., “Reykjanes: Geothermal Power Plant,” accessed November 20, 2014, http://www.alterrapower.ca/files/assets/_pd- f/Icleandic%20Assets/Reykjanes%20Power%20Plant%20-%20Iceland.pdf.; Alterra Power Corp., “Assets,” accessed November 20, 2014, http://www.alterrapower.ca/properties/By-Country/Iceland/default.aspx. The Reykjanes Power Station was developed by HS Orka, which is the third-largest electricity- generating firm in Iceland. At the time that the plant was developed, the company was owned by the government and municipalities. However, HS Energy was privatized in 2007.62 Now it is owned by Alterra (67 percent) and Icelandic Pension Funds (33 percent). Alterra is also the operator of the Reykjanes Power Station. There are three agreements that were needed to develop the Reykjanes Power Station: a lease for the land, a utilization license, and PPAs. In Iceland, the resources inside the land are owned by the landowner. However, the owner of the land does not have a guaranteed right to exploit these resources. As a result, Reykjanes Power Station had to obtain two agreements to be able to build the geothermal station. The first was a lease from the landowner (a municipal government), and the second was a utilization license from the National Energy Authority. In addition, the Reykjanes Power Station has signed two PPAs to sell the electricity produced. It has a PPA with Landsvirkjun, the National Power Company of Iceland, until 2019, and Norðurál, an aluminum-processing plant, through 2026. It plans to develop additional PPAs before expanding the plant’s capacity. Wholesale Market Industrial Customers 62. Askja Energy, “The Energy Sector,” accessed November 21, 2014, http://askjaenergy.org/iceland-introduction/iceland-energy-sector 40PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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