Wind
Wind is a resources that can be utilized in energy production. Technical innovations in wind energy have been rapid in the recent decades. Wind on land energy production has become a large contributor to energy portfolio of many systems globally and advancement in wind at sea is growing.
In Iceland, the meteorological conditions for wind energy utilization are generally favorable, and the operation of both wind and hydropower could be reasonable options in the Icelandic electricity system. Wind energy production is at its peak during winter when water flows may be lower, while it tends to be lower during summers when hydropower production is higher. Therefore, the maximum energy generation capacity from wind occurs in winter, while hydropower dominates in summer. Additionally, wind energy can be used to conserve water in reservoirs during wind power generation, thereby enhancing the overall utilization of electricity production capacity in Iceland. However, wind energy differs significantly from traditional Icelandic energy sources, which are largely limited to hydro and geothermal power based on the country's geological and natural conditions. Wind energy is accessible more widely across the country and its utilization must consider its unique aspects as well as the various impacts on nature, communities, and the economy.
What we do
In addition to the roles assigned to the National Energy Authority (Orkustofnun) by the Energy Act No. 87/2003, the authority also holds responsibility, based on the Electricity Act No. 65/2003, for the administration of wind energy utilization for electricity production. Wind farms with installed capacity of 10 MW or more are required to be part of the framework planning, similar to electricity production from other energy sources.
The National Energy Authority is responsible for the administration of wind energy utilization for electricity production in accordance with the provisions of the Electricity Act No. 65/2003. This includes the granting of operational licenses and soliciting opinions from other public authorities regarding the handling of matters related to wind energy utilization and other regulatory involvement in such projects. Furthermore, the National Energy Authority holds oversight responsibilities for electricity generation from wind energy, both concerning general legal and regulatory requirements, as well as specific obligations embedded in the operational licenses themselves.
Applications and licences
There is no need to obtain a separate research licence from the National Energy Authority. If a party intends to investigate the potential of a specific location, they should collaborate with the relevant landowner. As previously mentioned, any research-related activities may be subject to environmental impact assessments and must be in accordance with the area's zoning plan. Additionally, permission from the local municipality is required for such activities.
The National Energy Authority grants operational licenses for wind energy facilities according to the provisions of the Electricity Act. However, an exception is made for electricity generation facilities with installed capacity under 1 MW, unless the electricity generated is supplied to the distribution network of local utilities (dreifiveita) or the transmission system. For facilities with installed capacity of 100 kW or less, no operational license is required.
According to regulation nr. 1040/2005 the following documents need to be submitted along with an applicaiton:
The applicant's name, social security number, address and information on the form of business.
Results of research on the relevant activation option.
Description of the power plant, incl. maps and drawings showing the location and arrangement of structures, basic statistical information about the power plant and the delimitation of the power plant area.
Implementation plan, incl. about when it is intended to start construction, when it should be completed and when the operation of the power plant should begin.
Budget for the construction.
Agreement for connection to the transmission system or distribution system in the relevant area.
Information on whether there is an agreement with landowners and owners of energy sources regarding remuneration for the use of the relevant resource.
Information on the main environmental aspects of the power plant and its effect on the respective energy source, including existing uses in the area, as appropriate. Information must be provided as to whether the project is subject to assessment according to the Environmental Impact Assessment Act. If this is the case, the application must be accompanied by a report on the environmental impact assessment, as well as the environmental authority's decision on the environmental impact assessment. Then, as appropriate, the countermeasures and other measures that are planned to be implemented due to the environmental impact of the power plant according to the submitted data must be reported.
Information about the licences that the applicant believes need to be obtained from other authorities and whether the construction is in accordance with the current plan where the intention is to build the power plant.
According to Article 34 of the Electricity Act, the NEA shall publish an application for a license in accordance with this Act through an advertisement in the publication Lögbirtingablaðið. The parties concerned shall be given the opportunity to familiarize themselves with the application and express their views within four weeks of the publication of the advertisement. The applicant must pay for the publication of such an advertisement.
In addition to this the following criteria need to be fulfilled in order to obtain a licence for power generation by wind:
An activation license will only be granted to an independent legal and tax entity.
The licensed installation must be connected to the transmission system, cf. although paragraph 1 Article 11 of the Electricity Act. Power plants that are 7 MW or larger must be connected directly to the transmission system, while smaller power plants may be connected to it via a distribution network. An agreement with the transmission company or distribution utility in the distribution utility area where the power plant is located must be available when applying for a power plant licence.
If the project falls under Annex 1 of the Act on Environmental Impact Assessment, a final administrative decision on environmental impact assessment must be available before the power plant licence is granted.
When granting a licence, the assessment of the environmental impact due to the project and the government's final decision in this regard shall be taken into account. As appropriate, countermeasures and other conditions shall be prescribed to prevent or reduce the impact of construction on the environment and to promote the sustainable use of renewable energy sources and the careful use of non-renewable resources. Such actions or conditions must be in a normal relationship with the project and can, among other things, concerned with the design and equipment of the relevant structures, site boundaries, utilization volume, monitoring, measurements, research, information submission, projects aimed at preserving the natural quality and finishing of establishments and land during the period of employment and at the end of it.
The licence must be subject to the conditions necessary to take into account the existing use of the area in question.
Construction on the basis of an activation licence must be in accordance with the current planning plans in the relevant area.
Before construction begins on the basis of a licence, the permit holder must demonstrate that he can obtain sufficient funds to build the power plant and the necessary structures and equipment related to it. Before the same time, the license holder must also submit design data for structures and equipment related to the power plant. The design documents must be prepared or reviewed by experts who have knowledge and experience in the design of power plants.
Monitoring
According to the Act on the National Energy Authority No. 87/2003, one of the main responsibilities of the institution is to gather data on energy resources and other subsurface natural resources, their utilization, and the energy economy of the nation, preserve this information, and provide it to authorities and the public. In order to fulfill this role, the National Energy Authority is authorized to request data related to the utilization of subsurface natural resources, energy production, and energy consumption.
In the Electricity Act No. 65/2003, the specific oversight role of the National Energy Authority in relation to operational licenses is outlined, along with the obligation of permit holders to provide information and notifications. In exploration, research, and operational licenses, detailed arrangements and estimated scope of oversight regarding the specific permit are usually defined. In these cases, a minimum frequency of oversight and data reporting without comments is considered.
The oversight conducted by the National Energy Authority in relation to operational licenses is divided into four categories: [Further details about the specific oversight categories can be provided based on the available information.]
Internal supervision
Internal supervision is the self-conducted oversight of permit holders themselves, carried out by their employees or acquired service providers with designated authorizations, in order to ensure compliance with the requirements in the permit, laws, and regulations.
Routine monitoring
It is assumed that routine supervision of permits is conducted annually. In routine supervision, there is a comprehensive check to ensure that the activities of permit holders/compliance entities are in accordance with laws, regulations, and permits. This is achieved by conducting on-site inspections and by conducting general monitoring of permit holders.
The scope of supervision involves both on-site inspections and the review of data, comments, and inquiries related to the operation. The proportion of time dedicated to on-site visits compared to desk-based monitoring can vary significantly depending on the type of activity, and thus the amount of time spent on supervising compliant activities within the same category can vary.
Unscheduled monitoring
Unscheduled and unannounced site visits are carried out in the aftermath of notifications or reports of deviations from permits. Generally, unannounced inspections are only applied to investigate serious and/or repeated violations of the conditions of exploration, research, and utilization permits. Unannounced inspections are conducted as promptly as possible and, as needed, before permit issuance, review, or renewal.
Additional monitoring
If inspections reveal significant violations of permit conditions, supplementary monitoring shall be conducted within 6 months from the occurrence of the violation or the receipt of information about the violation by the supervisory authority.
Penalties for deviations are collected based on time fees and reflect the extensive nature of monitoring, such as notifications, data submissions, or other unforeseen factors. Orkustofnun will collect additional fees according to the fee schedule and actual timekeeping records in the institution's records.