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Minister of Industry issues permit for Kárahnjúkar project

September 3, 2002

Seated, left to right: Agnar Olsen, Fridrik Sophusson, Valgerdur Sverrisdóttir and Thorgeir Örlygsson. Standing behind them are Hjörtur Torfason and Kristján Skarphédinsson.

This permit also included the main power transmission facilities on the basis of Act no. 38/2002 on the harnessing of Jökulsá á Brú and Jökulsá in Fljótsdalur and the expansion of Krafla Station, and Act no. 42/1983 on Landsvirkjun. The permit is issued with the following conditions for its construction and operation:

  • The conditions set by the Minister for the Environment for environmental impact assessment, in a ruling dated December 20, 2001, must be complied with.
  • Points made by the National Energy Authority must be taken into account concerning monitoring and recording of the water flow and surface water level of rivers in the impact zone, in accordance with the provisions of the Waters Act.

In accordance with Act no. 15/1923 the Ministry will soon publish notification in the Government Gazette about the proposed hydropower facilities, allowing parties with vested interests the chance to comment on the plans. The licence is subject to the condition that Landsvirkjun undertakes to resolve issues that may arise from such comments in consultation with the Ministry.

At the same time as the hydropower development permit was issued, the Minister of Industry and the Managing Director of Landsvirkjun signed an agreement on a procedure for negotiation of reimbursement of research cost for the Kárahnjúkar Project to the Energy Fund. According to the Energy Fund Act no. 49/1999, the developer is obliged to reimburse the Energy Fund for the cost of research and planning which has been met with government funds, including the Energy Fund.



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