A new report has been published by GAM Management hf. [GAMMA] exploring the renewable energy potential and future outlook of Landsvirkjun, the leading producer of renewable energy in Iceland. This report is based on four different investment and project scenarios, as well as its potential impact on the Icelandic economy.
Within the report, one example of the topics discussed includes the possibility of a submarine cable, connecting Iceland to the European energy market. The consequences of such an undertaking on the Icelandic economy are debated, by asking, for example, whether it would be more economical to only sell energy to the Icelandic market or to enlarge the market by connecting it to the European energy market.
Effects derived from the investment policy can in fact be split into three elements:
· effects from investments during the investment period
· effects from the operation of energy plants and new industrial activity
· wealth effect derived from the improved financial situation of Landsvirkjun, i. e. dividend payments and tax paid into the Icelandic economy.
The Icelandic report was published on 28th June 2011; all numbers, data, calculations and conclusions are from that date.
The full English report can be viewed here.
For more details regarding Landsvirkjun, visit www.landsvirkjun.com.