The European Investment Bank (EIB), the European Union’s climate-focused lending arm, has signed a €100 million loan agreement — roughly 15 billion ISK — with Orkuveita. The funding is available on favourable terms for the next two years, according to a recent announcement. It will go directly toward infrastructure development at Orkuveita’s subsidiary, Veitum.
The financing is part of a long-term strategy to build out infrastructure capable of meeting growing demand for renewable energy, heating, electricity, and hot water across the capital region. Population growth has pushed up the need for new housing, and with it, more connections to the utility network — which in turn requires fresh investment and the replacement of ageing systems.
The loan will also support expanded heat production and a stronger electricity distribution network. Both are seen as pressing priorities given rising energy consumption tied to economic growth, and Iceland’s goal of reaching carbon neutrality by 2040.
