Orkuveita Reykjavíkur
Encyclopedia
Orkuveita Reykjavíkur is an Iceland
ic utility company that provides electricity, geothermal water for heating, and cold water for consumption and fire fighting. It also operates a data-utility network and waste-treatment facilities. The company's service area extends to 20 communities in the south-west part of Iceland. Orkuveita Reykjavíkur is owned by the City of Reykjavik
(93.5%) and the Municipalities of Akranes
(5.5%) and Borgarbyggð
(1%).
In 2007, Orkuveita Reykjavíkur sold a 45% share in Landsvirkjun
at a large profit. Rafmagnsveita Reykjavíkur had originally owned these shares. These funds were apprehended by Treasury of Reykjavík and not Orkuveita Reykjavíkur.
In all, the balance sheet of Orkuveita Reykjavíkur has thus probably lost IKR.60.000.000.000 ($500.000.000), due to mismanagement.
Orkuveita Reykjavíkur owns and operates the Nesjavellir and Hellisheiði
geothermal power stations. The plants provide electricity and hot water to industries and households in the Reykjavik capital area. 99% of housing in this area is heated with hot water provided by geothermal sources. Both plants are situated in the Hengill region; an active volcanic ridge.
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
ic utility company that provides electricity, geothermal water for heating, and cold water for consumption and fire fighting. It also operates a data-utility network and waste-treatment facilities. The company's service area extends to 20 communities in the south-west part of Iceland. Orkuveita Reykjavíkur is owned by the City of Reykjavik
Reykjavík
Reykjavík is the capital and largest city in Iceland.Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...
(93.5%) and the Municipalities of Akranes
Akranes
Akranes is a port town and municipality located on the west coast of Iceland.It is the ninth most populous town in Iceland after Mosfellsbær and Árborg with a population of 6,623 people...
(5.5%) and Borgarbyggð
Borgarbyggð
Borgarbyggð is a municipality of various amalgamated populated rural areas in the West or Vesturland region of Iceland.The biggest township in the municipality is that of Borgarnes, which has a population of 1,763 inhabitants...
(1%).
History
Orkuveita Reykjavíkur was established 1 January 1999, by uniting Rafmagnsveitu Reykjavíkur og Hitaveitu Reykjavíkur. Rafmagnsveita Reykjavíkur was established in the year 1921, but Hitaveita Reykjavíkur became an independent company in 1946. In the year 2000 Vatnsveita Reykjavíkur was united with Orkuveita Reykjavíkur, but the former started operation 16 June 1909.Financial difficulties in 2010
In 1994, a left-coalition (R-listinn) took political control of Reykjavík. They started drawing funds from Hitaveita Reykjavíkur for financing the Reykjavík Treasury. Besides, various projects were initiated on behalf of Hitaveita Reykjavíkur, which all returned losses.In 2007, Orkuveita Reykjavíkur sold a 45% share in Landsvirkjun
Landsvirkjun
Landsvirkjun is the largest energy producer in Iceland. It was founded in 1965 by the city of Reykjavík and the state of Iceland. Its general purpose is to produce and provide electricity for heavy industry and to sell electricity to local providers around Iceland...
at a large profit. Rafmagnsveita Reykjavíkur had originally owned these shares. These funds were apprehended by Treasury of Reykjavík and not Orkuveita Reykjavíkur.
In all, the balance sheet of Orkuveita Reykjavíkur has thus probably lost IKR.60.000.000.000 ($500.000.000), due to mismanagement.
Geothermal plants
Hellisheiði Power Station
The Hellisheiði Power Station is the second largest geothermal power station in the world, and the largest in Iceland. The facility is located in Hengill, southwest Iceland, from the Nesjavellir Geothermal Power Station. As of October 2011, the plant produces of electricity and 133 MW of hot...
geothermal power stations. The plants provide electricity and hot water to industries and households in the Reykjavik capital area. 99% of housing in this area is heated with hot water provided by geothermal sources. Both plants are situated in the Hengill region; an active volcanic ridge.