Icelandic government signs deal for country’s first wind farm

The CEO of the National Power Company of Iceland Landsvirkjun signed an agreement today with the Icelandic government for land and wind power production rights for the Búrfellslundur wind farm, which would be the country’s first. As the proposed wind farm lies on public land a deal had to be reached with the national government. The contract covers a period of 35 years, with the possibility of a 15-year extension.

Prime Minister Bjarni Benediktsson stated during the signing that it was a cause for celebration that wind power will become the third pillar of the country’s energy system—the others being hydro and geothermal.

Hörður Arnarson, CEO of Landsvirkjun said at the signing that the contract was the culmination of a long and detailed planning phase.

“It is incredibly gratifying that an agreement on land and wind power rights has been reached. Landsvirkjun has been very thorough in its preparation for Búrfellslundur, and this agreement is an important step toward making the project a reality,” he said.

The National Energy Regulatory Authority issued a power generation license for Búrfellslund this week. Following this, an application will be submitted to the municipal government of Rangárþing ytra for a construction permit. If granted, Landsvirkjun’s board will make the final decision on whether to proceed with the project.

Plans for the Búrfellslundur wind farm include 30 wind turbines on a 17 square kilometer area, with hopes to begin operations by the end of 2026.