Licences and applications
The National Energy Authority (NEA) grants licenses for the exploration and investigation of geothermal energy, regardless of whether it is on private or public land, in accordance with the Law on research and utilization of resources in the ground, no. 57/1998 (Resources Act). If an exploration or investigation is carried out by the landowner, the NEA's permission is not required, but a plan and description of the planned drilling, blasting, construction of mine tunnels or other significant works for this purpose must be sent to it.
The use of ground resources is subject to licensing from the NEA according to natural resources law, whether it is for the use of resources on private or public lands. However, a landowner is permitted to use up to 3.5 MW for household and farm needs without a licence, based on the total amount of thermal energy taken from the ground within the property. However, the NEA must be notified about planned ground drilling and other major constructions.
The NEA also issues research and utilization licenses for microorganisms in accordance with the Natural Resources Act and regulations no. 234/1999, but control is in the hands of the Icelandic Institute of Natural History.
The agency also issues power generation licenses for geothermal power plants according to Electricity Act no. 65/2003, on the basis that a utilization license is in place beforehand. However, a power generation license is not required for power plants with an installed capacity of less than 1 MW, unless the energy from the power plant is delivered to the distribution system of distribution companies or to the transmission system. For backup power stations that have the sole role of providing power for their own use due to breakdowns, lack of transmission capacity, lack of energy or other factors, an activation licence is not required. Owners of power plants with an installed capacity of 30–1,000 kW must submit technical information about the power plant to the NEA. It is also mandatory to notify the NEA annually about the total electricity production of power plants with an installed capacity of over 100 kW.
In cases where the planned projects fall under the provisions of the Act on Environmental Assessment of Projects and Plans, no. 111/2021, the National Planning Agency's conclusion that the implementation is not subject to assessment, or the agency's opinion on the project's assessment report, must also be available before the license application is sent to the NEA.
License – applications (and more information)
- Geothermal research license
- Geothermal utilization license
- Power generation license for geothermal power plants
- Research license on microorganisms
- Exploitation license for microorganisms