Skip to content

Upcoming power projects in Iceland

The following list explains what power projects are being considered in Iceland, according to the Icelandic Master Plan for Nature Protection and Energy Utilization. The projects have been cost analyzed (levelized cost of energy; LCOE), as described in a recent report published by the Icelandic Energy Industry Association (Samorka).

The projects are classified into three different groups (not all the possibilities have been officially cost-analyzed):

Utilization category: The project is likely to be developed if/when there is power demand and interest by the energy sector.

Projects on hold: More information and/or data is needed to decide if the project will be classified as Utilization or Protection.

Protection category: The project is unlikely to be developed, due to environmental issues.

The current classification is being reconsidered by the government  However, it is the Icelandic Parliament (Alþingi) that takes final decision regarding how each project is categorized. This means that over time, project(s) may be moved from one category to another, based on a political decision by the Parliament. The following classification is up to date as of August 2016. Note that in Samorka’s report on the LCOE, the cheapest option, Norðlingaölduveita, is said to be on hold. In fact this option is currently in the protection category.

 Project name Current  Type MW Annual LCOE
  classification GWh USD/MWh
1 Norðlingaölduveita* Protection Hydro n/a 670 22.50
2 Búlandsvirkjun On hold Hydro 150 1,057 25.00
3 Jökulsárveita/Blönduveita On hold Hydro n/a 100 25.00
4 Urriðafossvirkjun On hold Hydro 140 1,037 25.00
5 Þeistareykir I** and II Utilisation Geothermal 270 2,214 28.90
6 Hrafnabjargavirkjun* On hold Hydro 89 585 30.50
7 Villinganesvirkjun On hold Hydro 33 215 30.50
8 Skrokkölduvirkjun On hold Hydro 45 345 30.50
9 Hólmsárvirkjun* Protection Hydro 72 470 30.50
10 Bjarnarflag Utilisation Geothermal 90 756 35.20
11 Meitillinn Utilisation Geothermal 45 369 35.20
12 Sandfell Utilisation Geothermal 100 820 35.20
13 Sveifluháls Utilisation Geothermal 100 820 35.20
14 Austurengjar On hold Geothermal 100 820 35.20
15 Gjástykki On hold Geothermal 50 420 35.20
16 Trölladyngja On hold Geothermal 100 820 35.20
17 Bitra Protection Geothermal 135 1,100 35.20
18 Brennisteinsfjöll Protection Geothermal 90 711 35.20
19 Hvammsvirkjun Utilisation Hydro 93 720 38.80
20 Búðartunguvirkjun On hold Hydro 27 230 38.80
21 Hagavatnsvirkjun On hold Hydro 20 120 38.80
22 Holtavirkjun On hold Hydro 57 450 38.80
23 Hraunavirkjun* On hold Hydro 126 731 38.80
24 Selfossvirkjun On hold Hydro 35 258 38.80
25 Stóra-Laxárvirkjun Unclassified Hydro 35 200 38.80
26 Tungnaárlón On hold Hydro n/a 70 38.80
27 Bláfellsvirkjun Protection Hydro 89 516 38.80
28 Djúpárvirkjun Protection Hydro 86 499 38.80
29 Markarfljótsvirkjun Protection Hydro 121 702 38.80
30 Gráuhnúkar Utilisation Geothermal 45 369 44.80
31 Eldvörp Utilisation Geothermal 50 410 44.80
32 Hverahlíð Utilisation Geothermal 90 738 44.80
33 Krafla II Utilisation Geothermal 150 1,260 44.80
34 Stóra-Sandvík Utilisation Geothermal 50 410 44.80
35 Botnafjöll On hold Geothermal 90 711 44.80
36 Fremrinámar On hold Geothermal 100 840 44.80
37 Grashagi On hold Geothermal 90 711 44.80
38 Hágönguvirkjun On hold Geothermal 150 1,260 44.80
39 Innstidalur On hold Geothermal 45 369 44.80
40 Sandfell On hold Geothermal 90 711 44.80
41 Þverárdalur On hold Geothermal 90 738 44.80
42 Grændalur Protection Geothermal 120 984 44.80
43 Hverabotn Protection Geothermal 90 711 44.80
44 Kisubotnar Protection Geothermal 90 711 44.80
45 Neðri-Hveradalir Protection Geothermal 90 711 44.80
46 Þverfell Protection Geothermal 90 711 44.80
47 Blanda II Utilisation Hydro 31 194 49.70
48 Hvalárvirkjun Utilisation Hydro 55 320 49.70
49 Austurgilsvirkjun On hold Hydro 35 228 49.70
50 Blöndudalsvirkjun On hold Hydro 16 92 49.70
51 Brúarárvirkjun On hold Hydro 23 133 49.70
52 Hafrálónsárvirkjun efri On hold Hydro 15 87 49.70
53 Hafrálónsárvirkjun neðri On hold Hydro 78 452 49.70
54 Haukholtavirkjun On hold Hydro 17 99 49.70
55 Hestvatnsvirkjun On hold Hydro 34 197 49.70
56 Hofsárvirkjun On hold Hydro 39 226 49.70
57 Hverfisfljótsvirkjun On hold Hydro 42 243 49.70
58 Hvítá við Norðurreyki On hold Hydro 14 82 49.70
59 Kaldbaksvirkjun On hold Hydro 47 273 49.70
60 Kljáfossvirkjun On hold Hydro 16 93 49.70
61 Núpsárvirkjun On hold Hydro 71 412 49.70
62 Reyðarvatnsvirkjun On hold Hydro 14 82 49.70
63 Skatastaðavirkjun* On hold Hydro 156 1,090 49.70
64 Vatnsdalsárvirkjun On hold Hydro 28 162 49.70
65 Gýgarfossvirkjun Protection Hydro 22 128 49.70
66 Bakkahlaup On hold Geothermal 15 119 57.30
67 Hrúthálsavirkjun On hold Geothermal 20 160 57.30
68 Hveravallavirkjun On hold Geothermal 10 79 57.30
69 Reykjabólsvirkjun On hold Geothermal 10 79 57.30
70 Sandfellsvirkjun On hold Geothermal 10 79 57.30
71 Sköflungsvirkjun On hold Geothermal 90 711 57.30
72 Seyðishólavirkjun On hold Geothermal 10 79 57.30
73 Fljótshnjúksvirkjun On hold Hydro 58 405 60.50
74 Vörðufellsvirkjun On hold Hydro 58 174 60.50
75 Glámuvirkjun On hold Hydro 67 400 nyca
76 Arnardalsvirkjun* Protection Hydro 587 3,404 nyca
77 Bjallavirkjun Protection Hydro 46 310 nyca
78 Blöndulundur Unclassified Wind 200 705 nyca
79 Búrfellslundur Unclassified Wind 100 350 nyca
Notes:
* The project may be developed in a different way for less environmental impacts, resulting in lower generation.
** 45 MW station at Þeistareykir is already under construction, with the electricity sold (long-term contract).
n/a Projects involving new reservoir for current power stations (turbines may be added, but not necessarily).
nyca Projects that have not yet been officially cost-analyzed.

———————————————————————————-

The list above may change at any time and new projects not listed may be introduced and developed.

Planned 45 MW wind power project of Biokraft in Southern Iceland is not included on the list.

No planned power projects under 10 MW (mainly small hydro) are included on the list.

Cost estimates do not include transmission or connection cost.

The list is up to date @ August 2016.