Environmental planning and permit process for the Hellisheidi power plant in Iceland

Abstract

Geothermal energy is one of the most important energy sources in Iceland. For new projects it is essential to know well the permit processes required for the development of the energy resources. The Icelandic Government decided in 1997 to develop a Master Plan for all potential power projects in hydro and geothermal. All proposed projects should be evaluated and categorized on the basis of energy efficiency and economics, as well as, on the basis of the impact that the power developments would have on the environment. The Master Plan is comparable to the planning of land use and land protection. An act on Environmental Impact Assessment (EIA) was implemented in Iceland in 1994. Thermal power installations larger than 10 MWe are always subjects to EIA and drilling in low temperature areas in the vicinity of hot springs and 10 km long pipelines outside of urban areas may be subject to EIA. Beside this the development has to be in accordance with the master plan of the locality. Other licences or permits are needed before the development of the resources. All of the permit processes can take considerable time and therefore it is necessary to take it into consideration in the early stages of planning.