The Importance of Efficient and Professional Work Practices in the Licensing Processes

7 October 2024

The Importance of Efficient Licensing Processes and Improvements in Orkustofnun's Procedures

At the annual meeting of Orkustofnun, Kristján Geirsson, Director of Sustainable Resource Utilization, discussed the importance of efficient and professional work practices in the licensing processes, which are key to promoting the sustainable use of Iceland's resources. He described how Orkustofnun has streamlined and improved its processes to meet the growing demand for resources, which correlates with the increased need for licenses for resource utilization, such as groundwater and other energy projects.

Kristján’s slides can be found here.

Improvements in Licensing Processes
Kristján emphasized that Orkustofnun takes its licensing role seriously and works to ensure that all applications are handled professionally and in accordance with laws and regulations. Among the changes that have been introduced are increased emphasis on professional practices and efficiency in processing, aiming to shorten procedures, improve communication, and increase transparency. The project has focused on providing applicants with more flexibility and clarity about what is required to obtain a license, which has reduced delays in processing.

Increased Demand for Resources
Kristján noted that the demand for resources, particularly groundwater for aquaculture, has increased significantly. He explained that Orkustofnun has not always been able to keep up with the growing number of projects but is addressing this challenge by improving its processes. He pointed out that although Orkustofnun's licensing processes are sometimes criticized for holding back energy development, the fact remains that out of the 16 power projects approved by the Parliament in the utilization category of the Master Plan, only two applications for power licenses have been submitted, both of which have been processed. He also mentioned that following a legislative change in the Master Plan, where the expansion of power plants is exempt from certain provisions of the law, only one application has been submitted, which has also been processed.

Increased Efficiency and Streamlined Processes
Kristján explained the importance of clear processes and that all applicants understand the requirements for obtaining a license. Submitting an application is not enough; all fundamental aspects must be in place, such as agreements with landowners, compliance with planning, and completed environmental impact assessments. With improved and clearer processes, Orkustofnun has been able to accelerate procedures and address challenges related to licensing for energy and resource utilization.

Future Priorities and Challenges
Kristján emphasized that the organization is continuously working on improving and coordinating licensing processes, including collaboration with the Environment Agency and the Ministry. He explained that Orkustofnun has been working to streamline its procedures to make them more efficient and transparent for all parties. In this context, he also highlighted the importance of changes to the fee structure for licensing, which was established in collaboration with the Ministry to improve the process.

He also provided examples of large projects, such as Hvammsvirkjun and Búrfellslund, which have taken a long time to move through the licensing process due to complex factors and the scale of the projects. Despite these challenges, Orkustofnun has been working to improve its practices and align processes to ensure faster and more efficient processing of license applications.

Next Steps
Finally, Kristján discussed Orkustofnun's vision for the future and how licensing processes will be coordinated on a new platform in collaboration with the Environment Agency and other authorities. The goal is to ensure efficient and sustainable resource use, where a balance is maintained between utilization and protection.

Kristján’s slides can be found here.

The recording of the meeting can be viewed at the following link: Orkustofnun Annual Meeting 2024 Recording.