Domestic Market

ON Power was founded 1 January 2014 on the solid foundations and vast experience of Reykjavik Energy (Orkuveita Reykjavíkur) and its predecessors. We provide more than 75.000 homes and businesses in Iceland with electricity at competitive prices. All our energy production is certified green, sustainable and renewable.


ON Power Company Profile

ON Power is a leading power company that produces electricity, mainly by harnessing geothermal energy, to more than half of the population of Iceland. The company is a world leader in the utilisation of geothermal energy, and produces electricity and geothermal water for heating.

Renewable power sources account for more than 70% of the total primary energy consumption in Iceland, far higher than anywhere else in the world. Our district heating utility is the largest geothermal district heating utility in the world.

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All the Company’s activities are certified in accordance with international standards, including: ISO 9001 – The International Standard for Quality Management systems ISO 14001 – The International Standard for Environmental Management Systems OHSAS 18001 – An international occupational health and safety management system specification.

Nesjavellir Geothermal Plant

Nesjavellir geothermal plant generates electricity and hot water by utilizing geothermal water and steam. The plant output is 120 MWe and 300 MWt/1800 liters per second.The construction of the geothermal power station was started in 1987 and completed in 1990. Like the rest of the Hengill area, Nesjavellir is popular for recreational activities and boasts an outdoors area with marked hiking and riding trails. Archaeological finds and other historical cultural artifacts have been registered at a total of 375 sites at Nesjavellir and Ölfusvatn. Two hikers' shelters, open to everyone have been built in the Hengill area.

Hellisheiði Geothermal Plant

Hellisheiði Geothermal Plant is situated in the Hengill area in SW Iceland and provides electricity and hot water for space heating in the industrial and domestic sectors. Production capacity is 303 MW electricity and 133 MW thermal energy. Geothermal activity in the Hengill system is connected with three volcanic systems. At least three volcanic eruptions have occurred in the Hengill area in the last 11,000 years, the most recent being 2,000 years ago. The Hengill system is part of the wider Hengill region, which covers 112 square kilometers and is one of the most extensive geothermal areas in Iceland.

The Geothermal Energy Exhibition at Hellisheiði Power Plant

The geothermal energy exhibition is a state-of-the-art look into the harnessing of geothermal energy in Iceland.

Learn more about the energy exhibition

Power Plants

ON Power owns and operates three power plants: the Nesjavellir and Hellisheiði Geothermal Plants and the Andakílsárvirkjun hydroelectric station. The combined output of our operations is 450 MW of electrical power and 1,100 of thermal power. The utilisation of renewable energy resources has enabled Iceland to reach its 20/20/20 target, set by the EU. Almost all the electricity in Iceland is produced with renewable energy resources. ON Power actively pursues social responsibility in its activities and is engaged in extensive innovation on environmentally sound energy production

Low-Temperature Areas

Low-temperature areas in Iceland, which total approx. 250, can be found all over the country apart from the East and South-east. The largest low-temperature areas lie in southern and western Iceland. The general definition of a low-temperature area is that its temperature is less than 150°C at a depth of 1000 meters.

The temperature is highest in low-temperature areas lying closest to the volcanic belt (mid-Atlantic ridge), but decreases going away from it. Because of the low concentration of minerals in the water in low-temperature areas, the water can be use directly for hot water supply, and is generally deemed safe to drink. When the water heats up it dissolves various substances from bedrock, for example silica and hydrogen sulphide that gives the water its peculiar smell. Reykjavík is a low-temperature area.

Primary energy use in Iceland 1940-2014

Geothermal is Iceland´s single largest source of energy today.