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Electricity prices have decreased for horticultural farmers in Iceland, providing relief amid rising inflation and wage pressures. This reduction follows lower electricity demand after aluminium producer Norðurál scaled back operations due to technical issues, and PCC Bakki in Húsavík ceased production last year.

As a result, some growers have experienced lower energy costs. Axel Sæland, chair of the horticultural division of the Icelandic Farmers' Association, noted that despite ongoing inflation and wage increases, farmers maintained their pricing at the start of the year. Knútur Rafn Ármann, managing director of greenhouse business Friðheimar, confirmed that the decline in electricity prices was evident shortly before Christmas under a contract with HS Orka.