Electrification of Transport

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Reducing emissions from transport is probably the lowest hanging fruit for Icelanders to combat climate change, and indeed also to improve air quality in urban areas. Due to the very nature of OR and its subsidiaries’ social functions, the group can make a positive contribution by promoting energy shift in transport.

Since ON Power installed the first fast charging station in Iceland, in 2014, the company has been a pioneer in the development of infrastructure for energy shift in transport. Fortunately, more companies have joined the cause, and have set up their own charging points.

In 2022, Iceland’s Court of Appeal acquitted ON Power in a case that had begun before the tender appeal committee, but in the second half of the year, ON's lawyers were working on five other disputes before different government authorities.


Rapid charging and public charging

ON Power is now focusing on helping those who, for some reason, find it difficult to take that final step of switching over to EVs, by offering a home charging subscription, and with the development of ON's public charging stations.

2022 was the second year in a row that alternative energy vehicles were more numerous among newly registered cars than cars with combustion engines that burn fossil fuels.

In recent years, Veitur Utilities has collaborated with several municipalities to lay electrical cables and strengthen the distribution system for charging points in the municipalities' land, usually at existing parking lots. Most often, these are 22-kilowatt stations, up to six together. Veitur Utilities has already provided electricity to almost 60 such locations, and 20 new ones are planned for 2023.

Preparation to install 40 new distribution lines for rapid charging points, either for passenger vehicles or trucks, is underway. Such equipment usually requires the installation of new substations to ensure sufficient power for these efficient charging points.

Number of EVs in Iceland and ON Power's charging points

Support for house associations

In the spring of 2019, an agreement was signed between the City of Reykjavík, Reykjavik Energy, and Veitur Utilities regarding the large-scale development of infrastructure in the city for EV owners. The agreement entails that Veitur Utilities will provide distribution lines to charging points at the municipality's establishments and following residents' suggestions. OR and the City of Reykjavík also created a fund to support house associations’ instalment of charging points for residents. Veitur Utilities and OR then entered into a corresponding agreement with Akranes municipality.

2019 2020 2021 2022
In Reykjavík 387.863 kr. 16.266.234 kr. 15.579.931 kr. 27.119.553 kr.
In Akranes 2.430.414 kr. 932.556 kr. 373.086 kr.

Electrification of the Port of Reykjavík

In 2020, Veitur Utilities, Associated Icelandic Ports, and the Icelandic State, agreed to invest ISK 100 million each in the first phase of strengthening electrical connections for large ships. The project is in line with Iceland's climate policy, but the prerequisite for stronger connections is that Veitur Utilities would build a new substation by Sægarðar, which would also enhance the security of electricity delivery in the capital area.

In December 2022, the shore connection for Eimskip's cargo ships was officially commissioned, and preparations have begun for the shore connections for larger cruise ships berthing at Skarfabakki and in Reykjavík’s old harbour.

How do you charge at home?

ON Power has created several instruction videos to teach people how to handle and manage EVs and charging stations. This one was made in 2022 and is in Icelandic: