This summer, The Energy Centre advertised a competitive grant for solar cells that anyone could apply for, regardless of their legal place of residency or occupation.

As things stand today it is by no means feasible to produce electricity in Iceland with solar cells if it is to be fed directly into the electircity grid. If, on the other hand, users install cells to reduce their own consumption, the benefit can be said to triple, as the user saves on the purchase of electricity, transport and taxes.   
 
This summer, The Energy Centre advertised a competitive grant for solar cells that anyone could apply for, regardless of their legal place of residency or occupation. The grant’s maximum payout never amounts to more than 50% of the material costs, and is paid out afterwards, based on the invoices submitted by the applicant.   


The grant was allocated on a competitive basis, and the selection of applications was based on the allocation rules that accompanied the advertisement. The competition was very tough and The Energy Centre received 90 applications, which was far more than what they had budgeted for this project.  
 
It was proposed that The Energy Centre's grants would be mainly directed to where the interests of users and the state are the greatest. The order of priority for projects was this: Off-gridd  properties, users on rural rates and users in electrically heated areas.   
 
Due to the high number of applications, all the projects that were top priority received funding, but there were no funds to support other projects. The projects that received funding were therefore either Off-gridd or where electricity production is carried out with diesel generators, or both. In these locations, the solar cells reduce oil consumption and thereby the emission of greenhouse gases, which is in line with the government's energy policy and commitment. 

Allocation of solar cell grants from The Energy Centre

Björn Arnar Hauksson, Head of Data and Analysis at Orkustofnun, discussed the importance of data collection and analysis to support decision-making in energy matters.

Björn Arnar Hauksson - Major Steps Taken to Make Informed Decisions

Björn Arnar Hauksson, Head of Data and Analysis at Orkustofnun, discussed the importance of data collection and analysis to support decision-making in energy matters. At Orkustofnun’s annual meeting, he presented eight major improvement projects that Orkustofnun has undertaken recently. These projects form the foundation for the institution to better support the government's goals regarding energy security, energy transitions, and equal access to energy across the country.

Björn emphasized the importance of improving data accessibility to ensure better decision-making in energy production, security, and transitions. He pointed out that the lack of sufficient and timely information could lead to energy shortages, highlighting the need for regular and easily understandable data publication.

Energy Forecast and Wind Power Björn introduced Orkustofnuns’s latest analysis on the feasibility of electricity production and e-fuels. He emphasized that Iceland is presented with significant opportunities in developing cost-efficient wind farms that could contribute to e-fuel production. He presented scenarios comparing the efficiency of wind energy, hydropower, and geothermal energy, underscoring the importance of building new power plants to meet the increasing demand for electricity.

He also mentioned the expected wholesale electricity price by 2030, which is estimated to range between 7.5 and 10 ISK/kWh, largely dependent on water reservoir levels. Björn pointed out that Orkustofnun’s electricity price forecast, published last spring, was based on a supply analysis that would help predict future electricity price developments.

Data Publication and New Technology Björn also presented plans for significantly improved data publication in the coming year. Orkustofnun's new website now receives around 250,000 page views per year and offers various data, such as geothermal mapping, information on oil usage, and electricity security status. He mentioned that while data accessibility has greatly improved, there are still significant opportunities to enhance the dissemination of information and advice.

Electricity indicators are published quarterly, providing detailed information on electricity production, consumption, and security. Björn noted that the status of electricity security for priority consumers had significantly improved from last year, but that restrictions are anticipated this winter and in the coming year for interruptible consumers.

Vision and Next Steps Orkustofnun's vision involves a transformation of databases for electricity and geothermal energy. Björn emphasized that cooperation with domestic entities such as energy companies, Netorka, and Statistics Iceland will be crucial to publishing data within seven days, instead of the 16-month delay that has been typical in the past.

Additionally, Orkustofnun's new institution will place even greater emphasis on communicating information through user-friendly maps and visuals, benefiting both the government and the public in making informed decisions. This will also strengthen information regarding geothermal energy, particularly concerning potential supply, production costs, and demand.

Challenges and Opportunities Björn recognized that the launch of a new energy institution will pose short-term challenges, particularly due to changes in information technology and organization. He stressed the importance of minimizing delays in core project work to ensure that the quality of operations remains high.

In the long term, there are tremendous opportunities, especially in data analysis and information technology. With the new institution, it will be possible to achieve greater economies of scale and synergies in team operations, data infrastructure, and information dissemination, which will benefit all stakeholders in the energy sector.

Recording and Slides A recording of Orkustofnun's annual meeting, where these points were discussed, is available on YouTube.

Björn Arnar Hauksson’s presentation slides can be viewed here: Björn Arnar Hauksson’s Presentation Slides.

Major Steps Taken to Make Informed Decisions

At the recent Orkustofnun annual meeting, Director General Halla Hrund Logadóttir highlighted Iceland's unique position in utilizing renewable energy sources. She emphasized that the country's abundant energy resources have strengthened its economy, improved the quality of life, and fostered innovation and expertise, now shared globally. Iceland's ratio of renewable energy is exceptional on a global scale, laying the foundation for the nation's future energy strategy.

Energy Policy and Future Focus
In her speech, Halla Hrund also discussed Iceland's energy policy and the importance of the Master Plan (Rammaáætlun). She pointed out that the Master Plan ensures a balance between resource utilization and conservation, with major projects in hydropower, geothermal energy, and wind energy under consideration. She stressed the need for informed and well-considered decisions to ensure long-term resource sustainability for the benefit of society.

Energy Security and Challenges
Halla emphasized the importance of enhancing Iceland's energy security in light of recent challenges, such as severe weather and low water levels in Landsvirkjun’s reservoirs. She noted that Orkustofnun is working to increase efficiency and update data to improve access to information and strengthen energy security.

Wind Energy Planning
Halla also addressed the future potential of wind energy in Iceland, both on land and offshore, and how the government is working to define areas for wind farms. She highlighted the importance of collaboration and consensus among all stakeholders, including municipalities, environmental organizations, and industry. There are great expectations for wind energy to become a key part of Iceland's future energy strategy.

Collaboration and Social Consensus
Halla further underlined the importance of collaboration and social consensus regarding the utilization and protection of natural resources. She encouraged that decisions related to resource management be based on data and information, with the overall well-being of society in mind.

The meeting was well-attended, with diverse presentations and discussions on energy issues, future prospects, and challenges.

Halla Hrund's presentation slides can be viewed here:

Halla Hrund Logadóttir's Presentation Slides

The recording of the entire meeting, including presentations from all speakers, is available at the following link: Watch the full meeting.

Annual Meeting 2024: Iceland's Unique Position in Renewable Energy

Orkustofnun has since last November published new electricity market called Raforkuvísar. 

The latest version has been published on the Orkustofnun website under Information – Numerical data. 

Production was lower by -6% in Q1 year-on-year.   

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New electricity market publication