Icelandic renewable energy company ON Power, a subsidiary of utility company Reykjavík Energy, has commissioned a hybrid solar-plus-storage unit in Reykjavik that is demonstrating how distributed solar and storage can support electric vehicle charging infrastructure in Iceland.

Branded as Peaker Plant, the pilot project is located at Reykjavík Energy’s headquarters and combines over 100 kW of rooftop and facade solar PV with a 450 kWh lithium-ion battery system and three 240 kW DC fast chargers.

In a statement to pv magazine, ON Power, which has built and operates one of Iceland’s largest public fast-charging networks, said the project will evaluate how behind-the-meter generation and storage can reduce peak demand, improve local grid stability and lower operational costs at heavily-used charging hubs. The company said local bottlenecks and peak loads are becoming more relevant with rising electric vehicle adoption, particularly in Iceland’s context as a high-latitude system with seasonal energy production and demand patterns that can vary significantly.

The pilot system is testing dynamic control strategies, including PV self-consumption maximization, load smoothing during rapid charging sessions and potential grid-service applications, and forms part of ON Power’s broader strategy to transform fast-charging locations into fully-fledged energy hubs.

Guðjón Hugberg Björnsson, ON Power CTO, explained that the project is exceeding expectations in several key areas during its early commissioning results. “We are seeing better-than-expected alignment between on-site solar generation and charging demand, even during winter conditions,” he said. “That gives us confidence that hybrid energy hubs can play a meaningful role in optimizing both grid interaction and operational economics.”

Björnsson also told pv magazine the project features 230 bifacial glass-glass full black modules from Chinese manufacturer Jolywood, of 445 W each, while the battery system comes from Chinese manufacturer Elecnova and the DC chargers from Autel.

Image: Einar Örn Jónsson

Planning of the project started in late 2024 and construction finished in November last year. Björnsson said most of the challenges related to the project came from the fact that combining solar, battery storage and fast EV charging is still relatively new in Iceland, and therefore required a surprising amount of time on permitting, design discussions and coordination between stakeholders.

“In several areas, especially around fire safety and regulatory interpretation, there were no clear local precedents, so we had to work quite closely with authorities and designers to find solutions that would be accepted,” he explained. “That process was probably the most time-consuming part of the project, then the construction phase itself went quite smoothly once everything was in place.”

Björnsson sais the project is viewed as more than a pilot by the company. “The technical and operational experience from this installation is already being used as a reference as we develop similar solar-battery solutions at several of our main EV charging hubs around Iceland, installing solar generation where site conditions allow,” he explained.

ON Power’s statement added that the company believes distributed hybrid systems like its Peaker Plant will play a growing role in the resilience and economics of future charging infrastructure, even in power systems that are already largely renewable.

Iceland’s national grid is almost entirely powered by hydropower and geothermal energy sources. According to figures from the International Renewable Energy Agency (IRENA), Iceland had 7 MW of cumulative solar capacity at the end of 2024, the same figure reported since 2019.

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