Reykjavik Energy

The story of Reykjavik Energy, or Orkuveita Reykjavíkur, isn't one of a single founder but of a strategic consolidation of essential public services over decades. Its modern form was established on January 1, 1999, through the merger of Reykjavik's electricity and district heating utilities. These entities themselves had long histories, with the electricity utility founded in 1921 and the district heating company in 1946. The city's water utility, which began operations back in 1909, was integrated in 2000, completing the core of this multi-utility powerhouse. A significant turning point for the company came with the 2008 global financial crisis, which hit Iceland particularly hard. Reykjavik Energy faced severe financial difficulties, as its foreign currency-denominated debt ballooned with the collapse of the Icelandic króna. This period forced a major restructuring. Following the crisis, a recovery plan called "The Plan" was implemented to restore the company's finances, which ultimately proved successful. In 2014, a mandatory unbundling led to the creation of subsidiaries ON Power, for electricity production, and Veitur Utilities, for managing the water, heating, and electricity distribution networks. This move was crucial for creating a more transparent and resilient operational structure, helping to rebuild trust after the financial turmoil.