Samorka urges overhaul of energy project approval system

Samorka chief executive Finnur Beck says Iceland’s energy project approval process is too lengthy, complex and unpredictable, and needs fundamental reform. The energy and utility companies’ association shares the main conclusions of a Chamber of Commerce analysis, mbl.is reports.

The Chamber has proposed bringing energy infrastructure and projects under the same licensing process as other businesses, with parliamentary approval required only for very large projects. Beck said the current system, particularly its framework plan for energy projects, had few strengths and had no equivalent in neighbouring countries that he knew of.

Samorka has long argued that the legal framework can make administrative preparations for projects take an unreasonably long time. Beck said the framework plan had not achieved its intended goals, and that recent decisions had not taken sufficient account of government policy on the electricity market, the energy transition and industry.

He said reform should speed up decisions without lowering standards for environmental assessment or nature conservation. Licensing and environmental assessment for moderate-scale energy projects should follow the same criteria as in other industries, he said. Any changes to appeal procedures must be carefully designed to protect the rights of the public and stakeholders and ensure decisions meet legal and environmental requirements.

Beck said Iceland would need substantially more green energy in the coming years and decades to ensure energy security, complete the energy transition and support the development of society and business. Demand would come not only from large users but also from households, population growth, businesses and the electrification of transport.

He added that increasing electricity production must go hand in hand with stronger transmission and distribution networks, efficient energy use and flexibility in the system. Beck also praised the current minister responsible for the sector, Jóhann Páll Jóhannsson, for taking the initiative on several necessary changes.