Icelandic government and Landsvirkjun sign agreement for wind farm project at Búrfellslundur

The Icelandic government and Landsvirkjun have signed an agreement concerning land use for the planned wind farm at Búrfell, referred to as Búrfellslundur. Prime Minister Bjarni Benediktsson and Landsvirkjun CEO Hörður Arnarson formalized the arrangement, granting the state utility permission to construct and operate a wind energy facility in a designated area south of the Sultartangi Dam on state land. The agreement is set for a period of 35 years, with a potential extension of 15 years.

This week, the Energy Authority issued a license for the wind farm project. Following this, an application for a construction permit will be submitted to the Rangárþyngs ytra municipality. If approved, the board of Landsvirkjun will make the final decision on whether to proceed with the project. Plans include the installation of up to 30 wind turbines.

However, the project has faced criticism. The Executive Director of Landvernd expressed concerns about granting permits for the wind farm without a comprehensive policy on wind energy in place. Landvernd’s chairwoman stated that while the organization does not plan to contest the granting of the operational license, local authorities in Skeiða- and Gnúpverjahreppur are considering a legal challenge. Skeiða- and Gnúpverjahreppur’s mayor highlighted that the turbines may be located in Rangárþing ytra, but the impact area extends into both municipalities, where significant development is proposed in the protected area of Þjórsárdalur. The mayor believes that had this development occurred earlier, the discussion around Búrfellslundur might not be happening today.