Icelandic Horticultural Farmers Benefit from Reduced Electricity Prices
Icelandic horticultural farmers are benefiting from a reduction in electricity prices, providing much-needed relief amid inflation and rising wages. This decrease follows lower electricity demand due to the scaling back of operations by aluminium producer Norðurál and the closure of PCC Bakki. Farmers have managed to maintain their pricing despite ongoing economic pressures, with the benefits of reduced energy costs becoming apparent in recent months.
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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.
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