Electrification of Transport

Reducing emissions from transport is one of the great opportunities for Icelanders to tackle climate change and also actually improve air quality in populated areas. Because of the nature of the operations of Reykjavik Energy and its subsidiaries, the Group can contribute by supporting energy switching in transport.

Charging subscriptions and neighbourhood charging points

Since ON Power set up the first fast charging station in Iceland in 2014, the company has been a pioneer in developing infrastructure for energy switching in transport. Fortunately, more companies have followed suit and set up their own charging stations. ON Power is now focusing on helping those who for some reason have difficulty taking the plunge or switching to an electric vehicles, by offering Home Charging on subscription and by developing ON Power neighbourhood EV charging points. A lawsuit was filed in 2021 over the latter issue. The Public Procurement Complaints Committee had ruled that the City of Reykjavík’s tender for ON Power's EV charging stations was illegal and the company was ordered to close down those that had already been set up. After expedited proceedings in the District Court, however, this ruling was overturned and the neighbourhood EV charging points were reopened. This explains the fluctuations in the number of charging points during the year.

2021 was the first year in which the number of alternative energy cars, i.e. cars that do not burn fossil fuels, exceeded the number of newly registered fossil fuel vehicles.

The number of electric cars in Iceland and ON Power charging points

Grants to housing associations

In the spring of 2019, an agreement was signed between the City of Reykjavík, Reykjavik Energy and Veitur Utilities regarding a large-scale infrastructure development in the city for electric vehicle owners. The agreement includes Veitur Utilities providing power supply connections for charging equipment at the municipality’s offices and following indications from residents. OR and the City of Reykjavík also invest in a fund to support the housing associations of apartment buildings to set up charging equipment for residents. Veitur Utilities and OR then made a corresponding agreement with the town of Akranes.

The table below shows OR’s payments to residents’ associations under this agreement.

2019 2020 2021
In Reykjavík 387,863 ISK 16,266,234 ISK 15,579,931 ISK
In Akranes 2,430,414 ISK 932,556 ISK

Electrification of the Port of Reykjavík

In 2020, Veitur Utilities, Faxaflóahafnir sf. (Associated Icelandic Ports) and the state agreed to invest ISK 100 million each in the first phase of strengthening electrical connections for large ships. The project is in accordance with Iceland's Climate Action Plan, but a prerequisite for effective connections is the construction of a new Veitur substation at Sægarður, which will also boost electricity delivery security in many parts of the capital area.

EV owners visited

ON Power visited a few EV owners during the year to inquire about the benefits and challenges of owning such a vehicle. Among them was ms. Sóley Kristjánsdóttir, better known to many as DJ Sóley.