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Transmission System Operator

Iceland is a sparcely populated country. However the whole country is connected to the power grid which is rated as one of the most reliable in the world.

According to the Electricity Act, the transmission system operator and the distribution system operators have exclusive rights regarding transmission and distribution respectively. The Icelandic transmission system operator (TSO) is Landsnet hf. which owns and operates the whole transmission system, consisting of lines from 33kV up to 220 kV.

Landsnet is responsible for the development of the transmission system in an economic manner, taking into account security, efficiency, reliability of supply and the quality of electricity. Landsnet possesses the exclusive right to construct new transmission facilities. The company is also responsible for the secure management of the electricity supply system and ensures the security and quality of delivery of electricity.

Landsnet is prohibited from engaging in any activities other than those which are necessary for the performance of obligations according to the Electricity Act. According to the Electricity Act and Act on the Establishment of Landsnet hf., Landsnet may operate an electricity market provided that it keeps the accounts for such operation separate from accounts relating to other activities. An electricity market has not been established.

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