At the end of September 2024, a final conference for the EEA Grants Environment, Energy and Climate Programme was held in Warsaw, Poland, which is part of the operation of the EEA Agreement. The National Energy Authority is the coordinator on behalf of the Ministry for Foreign Affairs and Iceland with the plan. The programme was led by the Polish Ministry of Climate and Environment in cooperation with the National Fund for Environmental Protection and Water Management (NFOŚiGW) in Poland, the National Energy Authority of Iceland, and the Water and Energy Agency of Norway and the Environment Agency of Norway. 

The programme covers the period 2014 – 2021, (completion of construction until April 2025) and is the largest programme within the EEA Grants Fund, around EUR 140 million, but in addition Poland also provided 15% additional funding. The project parties in question also contributed their own funding, so that the scope of the projects was greater. The conference brought together representatives of the above-mentioned partners of the programme, and from the Structural Fund Secretariat in Brussels, as well as representatives of the programme from other EU countries, Polish NGOs, project beneficiaries, etc. 

The programme is one of the largest projects in the field of green energy transition and climate issues in which Iceland participates, as the plan is expected to reduce carbon dioxide emissions, CO2, by 600,000 tons annually, while in comparison, Iceland is expected to reduce carbon dioxide emissions by 120,000 tons annually.  This clearly demonstrates the success of Iceland's participation in cooperation with other European nations in achieving success in the field of green energy transition and climate issues abroad, through professional projects and targeted cooperation within the EEA, which benefits everyone, as emissions are independent of borders.

The focus of the plan was mainly on 4 main areas: 

·       Increased renewable energy production

·       Improved energy efficiency in buildings, industry and municipalities 

·       Strengthen the opportunities of municipalities to reduce greenhouse gas emissions and adapt to changed conditions due to climate issues,

·       Improve the state of ecosystems.

At the conference, great satisfaction was expressed with the results of the plan despite the challenges during the period, such as from Covid and the energy crisis that can be traced to the war in Ukraine, which had a major impact on prices, project time and inputs for individual projects, etc.  A representative of the Polish government thanked all those involved in the programme from the National Energy Authority of Iceland, the Water and Energy Authority of Norway and the Environment Agency of Norway, the Structural Fund Office in Brussels, as well as to parties in Poland from the National Fund and from the Ministry of the Environment and Climate. Friðrik Jónsson, Iceland's ambassador to Poland, also gave a speech.

The plan is then divided into 12 smaller sub-categories, which were put out to tender in the market: 1. Investments in blue-green infrastructure, 2. Raising awareness in schools about climate change, 3. Planning of ecosystems in terms of species and habitats, 4. Ecosystems and NGOs, 5. Prevention of invasive alien species, 6. Circular economy, 7. Energy efficiency in buildings, 8. Sharing of energy systems for heating and energy production,  9. Modernization of municipal district heating utilities, 10. Geothermal energy, 11. Production of wood pellets, and 12. Small hydroelectric power plants.  

Piotr Bogusz, Deputy Director General of the Department of European Funds, opened the conference, on behalf of Krzysztof Bolesta, Permanent Secretary at the Ministry of Climate and Environment. He expressed satisfaction with the results of the projects and hoped that the good results would encourage participants to continue their efforts in climate adaptation, environmental protection, ecosystem protection, green energy transition and improved energy efficiency.

Norway's Ambassador to Poland, Øystein Bø, emphasized and thanked the successful cooperation of all parties involved in recent years from Poland, Norway and Iceland, as the National Energy Authority has participated in the programme on behalf of Iceland.

Friðrik Jónsson, Iceland's ambassador to Poland, also expressed his satisfaction with the successful cooperation. Iceland's priority continues to be energy security and geothermal energy, which aims to protect the climate and promote green energy development through this initiative. Kjetil Lund, Director General of the Norwegian Water Resources and Energy Agency (NVE), emphasized that further climate adaptation will be a challenge in the future.  He emphasized the results of the project, such as improved energy efficiency, reduced CO2 emissions, lower energy bills and noise reduction.

Increased energy security and environmentally friendly energy sources

One of the main objectives of the EEA Grants in the field of renewable energy is to strengthen energy security, reduce greenhouse gas emissions and improve environmental conditions in the countries concerned, e.g. by using renewable energy, e.g. geothermal energy instead of fossil fuels.

The National Energy Authority's participation in the programme has mainly been in the form of assistance in the design and implementation of plans and supervision of the implementation of tenders (calls), e.g. through presentations and instructions to companies, institutions and individuals in Iceland. The National Energy Authority has also participated in bilateral projects and contributed to increased contacts and knowledge building between Iceland and the countries in question, through information sharing, briefings, increased communication, visits by groups from Iceland to these countries and groups from the countries in question to Iceland.

Panel discussion by the Programme Parties from Iceland and Norway

Baldur Pétursson, from the National Energy Authority, Anne Marie Mo Ravik from the Norwegian Environment Agency and Michael Steinfeld from the Norwegian Water and Energy Agency, discussed the impact of the collaborations established during the projects, the material results achieved, the impact on local communities and insights for the future issuance of the grants. The sponsors placed particular emphasis on the fact that the green energy transition, the environmental and climate solutions that had been implemented, could serve as models for larger and more powerful projects in the future. 

They emphasised the partnership that characterised the programme and the importance of scaling up successful projects to benefit wider communities and encourage similar projects elsewhere in Europe.

Baldur mentioned as an example the transfer of knowledge in the field of geothermal energy between Iceland and Poland in  the KeyGeothermal project, which is the largest training project in the field of geothermal energy that has been held in Poland. He also mentioned that over 10 projects are in the works between Iceland and Poland in the field of geothermal energy. He mentioned one of the importance of reducing bureaucracy for the projects at all levels and thus increasing efficiency and utilization.  

Dorota Zawadzka-Stępniak, President of the National Fund for Environmental Protection and Water Management, emphasized the coordination of the Fund with the actions carried out in the plan. She congratulated the Ministry and partners from Iceland and Norway on their excellent and fruitful cooperation.

In the face of dynamic climate change, cities are playing an increasingly important role in the adaptation process. By 2050, it is estimated that 68% of the world's population will live in cities, making them particularly vulnerable to extreme weather events, while also giving them the potential to lead the green transition.

Urban areas offer the space to implement innovative solutions in sustainable development, improved air quality, water resource conservation, and the use of renewable energy sources.

At the meeting, it was noted that the support of the plan enabled the implementation of numerous projects that have improved the quality of life of residents and shaped cities into more climate-resilient and sustainable places. Participants in the projects showed how these projects had contributed to the green transformation of cities and the green energy transition, through improved quality of life.  

Good results from the EEA Grants Programme for the Environment, Energy and Climate in Poland                                         

Fragile security of electricity supply in Q1 2025 and 2026

New publication of Raforkuvísar has been published. It shows that the security of supply of electricity in Q1 2025 and 2026 is fragile. It means there is uncertainty about weather production will be sufficient to meet primary demand.  

New information is also shown on the energy content of hydro reservoirs, market share in the electricity retail market, and market share in supply into the general market.  

See the publication in Icelandic language on:   

https://orkustofnun.is/upplysingar/talnaefni/raforka. 

Orkustofnun has granted Sunnlensk Orka an exploration license for geothermal in Ölfusdalur.

Orkustofnun has granted Sunnlensk Orka an exploration license for geothermal in Ölfusdalur, municipalities of Ölfus and Hveragerðisbær. The exploration license and license cover letter can be found on Orkustofnun's website, see https://orkustofnun.is/licenses/OS-2024-L017-01.

Orkustofnun's decisions regarding the granting, review or withdrawal of prospecting, exploration and exploitation licenses are subject to appeal. 

More information about appeals can be found in the license.

Orkustofnun has granted Sunnlensk Orka an exploration license for geothermal in Ölfusdalur, municipalities of Ölfus and Hveragerðisbær.

The Electricity Authority of the National Energy Authority (ROE) has issued new guidelines outlining the rights of distribution and transmission companies to classify the costs of research and development (R&D) projects as additional operating expenses. These guidelines are based on Articles 12(3) and 17(3) of the Electricity Act.

Support innovation and advancements in the energy distribution and transmission sector in Iceland.

Provide assistance for projects at the conceptual or initial development stage.

Define what constitutes recognized costs in the context of R&D projects.

Consultation Process: ROE received comments from RARIK on the draft guidelines, and these comments were considered in the final version. No other comments were received regarding these guidelines.

The guidelines are intended to ensure that the costs associated with R&D projects undertaken by transmission and distribution companies are correctly classified as additional operating expenses. This classification is designed to facilitate companies' efforts in innovation and development within the energy sector.

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Guidelines on Cost Classification for Research and Development Projects