Skip to content
Thursday, 29 October 2026 Icelandic stories. Global audience.
Business & Politics

Construction starts on Iceland’s Vaðöldu wind farm, signalling new era for renewables

Work has begun on the Vaðöldu wind farm operated by Landsvirkjun, with Reykjavik Energy planning a separate wind project on Mosfellsheiði. The growth of wind power sparks debate about Iceland’s energy future.

City foreground with mountains and clear blue sky behind (Mosfellsheiði)
Image: www.Pixel.la Free Stock Photos / Wikimedia Commons (CC0) · licence, original (resized) Illustrative image.

Construction work has begun on the Vaðöldu power plant, a wind farm operated by Landsvirkjun, the National Power Company of Iceland. Heimildin reported that this marks one of the country’s first major moves into wind power and signals a notable shift in Iceland’s energy mix.

Wind energy is emerging as a new resource in Iceland, a country traditionally known for its extensive use of hydropower and geothermal energy. According to Heimildin, energy issues have been at the centre of growing discussion in recent times as companies look for fresh approaches to power generation.

In addition to the Vaðöldu project, a wind-measurement mast has been erected on Mosfellsheiði, a heath in western Iceland that lies between Esja and Henglafjöll. Reykjavík Energy (Orkuveita Reykjavíkur) intends to develop a wind farm on the site, further broadening the role of wind in the national energy mix.

Landsvirkjun, the National Power Company of Iceland, is the country’s largest electricity generator; it was founded in 1965 by the state of Iceland and the city of Reykjavík. It operates 21 power stations across five main operational areas and in technologies including hydropower, geothermal and two existing wind fields.

Sources

Image: www.Pixel.la Free Stock Photos / Wikimedia Commons (CC0) · licence, original (resized) Illustrative image.