Collaboration in the development of electrical infrastructure in Reykjavik
25 february 2021 | Location: Reykjavik

Veitur utilities, a subsituary of Reykjavík Energy, and Strætó, public buses in Reykjavik area, have signed a letter of intent in which the companies intend to join forces to ensure that the development of Veitur’s electrical infrastructure takes into account the needs of Strætó and other environmentally friendly modes of transport. With this, the companies, which are both publicly owned, want to do their part to minimize the social cost of energy exchange in transport in Iceland. Transportation is the main objective of SPARCS in Reykjavík making the city carbon free as electricity production is already done in an environmental way. This is therefore an important step on our way to our SPARCS goal.

For this purpose, a working group will be set up to assess the scope of the project based on Strætós’ operations and with regard to other environmentally friendly modes of transport. The carbon footprint of the buses currently in use will be examined and ways will be sought to reduce it, and subsequently the benefits of electrifying the buses will be assessed. 

In order to achieve synergies, it is necessary, among other things, to assess the impact of different bus charging methods on the electricity distribution system and to choose locations for bus charging stations where Veitur’s electricity distribution system can handle them in an efficient manner. Veitur’s long-term plans will be examined and how best to achieve synergy with the clean energy of the bus fleet.

It is expected that the partnership will bring considerable benefits to the electrified future for both companies, but they have each set an ambitious policy that supports sustainable and carbon-free operations. It is planned that in the future, Strætó’s transport centers will be a center for sustainable transport and human life.

Jóhannes Rúnarsson, Strætó:

“Strætó emphasizes the introduction of the use of environmentally friendly energy sources as well as the utilization of natural resources in a sensible way. We have already taken a step towards electrifying the fleet and in the next few years the share of clean energy carriages will increase significantly with a positive impact on the environment, “says Jóhannes Rúnarsson, CEO of Strætó.

Jóhannes Þorleiksson, Veitur utilities:

“Strætó bs has already started to electrify the fleet and it has given good results. With the steps that have been taken, Strætó is at the forefront of energy exchange compared to neighboring countries. We at Veitur want to ensure that the electricity distribution system is ready for further electrification, both to reduce operating costs and in our joint fight against climate change, “says Jóhannes Þorleiksson, director of Veitur’s electricity supply.