Orkuveita Reykjavíkur
| Date: | 13.4.2026 |
|---|---|
| Country: | Iceland |
| Customer: | Orkuveita Reykjavíkur |
| Amount in ISK: | ISK 4,625 million |
| Amount in EUR: | EUR 32 million |
| Maturity: | 10 years |
| Business sector: | Public Sector & Utilities |
Facilities
Arctic Financing Facility (read more): 100%
Project
NIB has provided the loan to Reykjavík Energy to co-finance the company’s investments at the Hellisheiði geothermal power plant during 2025–2027.
The investments include:
- Expanding thermal production
- Drilling a new production well
- Building a new maintenance and storage facility
The total cost of the investments is ISK 6,338 million.
Fulfilment of NIB's mandate
Productivity:
Reykjavik’s population has grown steadily over the last 10 years, and current projections point to continued growth into the 2030s. Each year, peak hot-water demand grows by 120 litres per second.
The investments will strengthen security of supply, especially during peak demand, helping prepare for the ongoing population increase.
- Expansion of thermal production will increase the total production capacity of the thermal powerplant from 220 MW to 345 MW
- The new drilling well will have an estimated electric net power output of 5MWe
- The new maintenance and storage facility will shorten the distance for repairs and overhauls.
Ex-post indicators:
- Production capacity (MW)
- Annual renewable energy/heat production (MWh)
Environment:
The investments will annually deliver 75,000 MWh of additional renewable heat generation during peak-demand periods.
Sustainability summary
In 2025 the carbon intensity at the Hellisheiði power plant was 4.8 gCO2e/kWh, contributing to achieving NIB’s 2030 climate target for Heat and power (30 gCO2e/kWh).
