Vaðölduver sets the course as Iceland’s next wind farms face a test

Iceland’s first large wind farm began generating electricity on 15 September, when its first 14 turbines started operating. The details and analysis are from a contributed article in Morgunblaðið by Skúli Jóhannsson and Hákon Skúlason.

Vaðölduver will have 28 turbines, with a total installed capacity of 120 megawatts and estimated annual output of more than 440 gigawatt-hours. The project is due to be completed by the end of 2027.

Discussion since the turbines began operating has largely focused on their appearance. Environment, Energy and Climate Minister Jóhann Páll Jóhannsson called them “very beautiful and imposing” and said people needed to “adapt our sense of beauty to the energy transition”. His remarks revived debate about wind turbines, landscapes and Icelandic nature.

Existing infrastructure could help

Vaðölduver is being built in the Þjórsá and Tungnaá region, Landsvirkjun’s largest power area. Seven hydropower stations and an extensive electricity system have been developed there over several decades.

A wind farm requires more than turbines: it also needs roads, cables, connections to the transmission system and other infrastructure. The article says the location can therefore affect both costs and environmental impacts. Some infrastructure is already in place near Vaðalda, although the project itself includes about 19 kilometres of roads and tens of kilometres of cables.

Landsvirkjun has not published a final total cost estimate for Vaðölduver, so any savings from sharing infrastructure cannot be quantified. The article notes, however, that proximity to the transmission system and existing energy facilities can affect the cost-effectiveness of a new power project.

Wind and water can complement each other

Iceland’s electricity system relies mainly on hydropower and geothermal energy, while wind power has a different production pattern. Landsvirkjun has said winds in Iceland are strongest in winter, when less water flows into its reservoirs. When wind power is available, less water can be used, leaving more in storage for calmer periods and increasing the flexibility of hydropower.

Two experimental turbines installed by Landsvirkjun near Búrfell in 2013 offered an early indication of the region’s potential. In their first full year of operation, 2014, their capacity factor was 44%, compared with a global average of about 28% cited at the time.

New legislation brings wind into the planning process

On 19 June 2026, Alþingi approved changes to the law on the framework plan for the protection and use of energy resources. The changes took effect on 7 July, clarified how wind power is handled under the framework plan and abandoned earlier proposals for a separate fast-track process for wind farms. Wind power is now explicitly included in the process.