ON Power Seeks Buyers for 150 Megawatts of Renewable Electricity: Explores Market Opportunities for Sustainable Energy Future

ON Power has published an advertisement on an international platform seeking interested parties in the purchase of 150 megawatts of electricity from its power plants. ON Power operates geothermal power plants in the Hengill area, where hot water is also produced for the capital area, and a hydroelectric power plant on the Andakílsá river in Borgarfjörður. The company aims to obtain a market price for the electricity when contracts expire.

No agreements have been concluded for extending current contracts at market prices. Therefore, ON Power has decided to advertise 150 megawatts of electricity for interested buyers, which will all become available within the next 2-4 years. The advertisement will be posted on a European bidding platform.

The company’s CEO, Árni Hrannar Haraldsson, stated that ON Power is publicly owned and cannot sell electricity below market price as it would breach state aid rules. The company is experiencing a high demand for renewable energy, and the current contract prices do not meet market price requirements.

Haraldsson also explains that ON Power owes the duty to its owners and the entire community to pursue the sale of energy at market prices.

“The process is open, and the company will be prepared for the possibility that no continuous sales agreement will be reached. Thus it is taking this approach to protect the interests of the public company and its sustainability.

We also believe that in the future, an increasing portion of electricity production in the country will be sold in this manner while ensuring public access to electricity through specific measures.”

Haraldsson reiterates that it is important for electricity prices to form in the market „while ensuring secure public access to electricity, no matter what happens.“