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.

Guidelines on Cost Classification for Research and Development Projects

Montly fuel sales available for the first time

Monthly fuel sales data will now be available for the first time. This data provides important information on trends in fuel consumption and greenhouse gas emissions. Fuel suppliers in Iceland submit monthly data to the National Energy Autority (NEA) regarding the sale of fuel, and this data will be updated regularly and published only two months later.


The data is divided into five main application categories: road transport, fishing vessels, shipping, aviation and other applications. The total of all categories is also published. For each data set, two graphs are published, which on the one hand shows the sales by month and energy sources, and on the other hand the cumulative amount of fossil fuel sold in the year 2023 and so far in 2024.


The data has a active connection to the NEA's database and can therefore change if corrections are received from vendors. Along with the publication, an API data connection will be opened, which gives anyone who wants access to the underlying data.

Read more here: Fuel sales data — Orkustofnun

Landsvirkjun granted a new power plant license for electricity production in Sigalda

Orkustofnun has granted Landsvirkjun a new power plant license for electricity production in Sigalda.

The power plant  license and license cover letter can be found on Orkustofnun's website, see https://orkustofnun.is/licenses/OS-2024-L014-01.

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 since last November published a new electricity market report called Raforkuvísar.

Orkustofnun has since last November published a new electricity market report called Raforkuvísar, the latest version has been published on the Orkustofnun website under Information – Numerical data. 

Production was lower by -4,7% in Q2 year-on-year, hedge ratio of expected sales to priority users in Q1 2025 is now at 88% and has improved substantially in recent months, priority use in Q2 increased by 5,7% year-on-year, while curtailable usage has decreased significantly, and the wholesale electricity price in August is 7,7 kr/kWh.  

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Significant increase in electricity infrastructure anticipated