The Icelandic government has introduced a bill that would combine four separate permits required for new power plants into a single permit, to be issued by the Icelandic Environment and Energy Agency (Umhverfis- og orkustofnun). The bill was passed at a cabinet meeting on Tuesday 27 October 2026, as first reported by mbl.is.
If the bill becomes law, the combined permit must be issued within 18 months of receiving a complete application. The statutory processing time for these permits would be set for the first time under the proposed legislation.
The bill was prepared by Jóhann Páll Jóhannsson, Iceland’s minister of environment, energy and climate. Its documented aim is to simplify procedures for establishing new energy facilities, assist with Iceland’s transition to renewable energy, and comply with European Parliament and Council Directive (EU) 2018/2001 on increasing the share of renewables in the energy mix.
The government says the proposal also seeks to empower households and companies to produce, consume, store, and sell their own renewable electricity within so-called energy communities. This move is intended to promote increased involvement of consumers in the energy market.
According to the government, the proposed changes are aligned with its policy statement and Iceland’s economic policy action plan, which calls for simple and efficient administration in energy matters.
Jóhann Páll Jóhannsson stated: “We are thoroughly revising the energy regulatory framework.” He also said: “Next I will introduce bills to speed up construction of transmission and distribution networks and to strengthen environmental-impact assessment legislation.”
Sources
Links: Við kynningu einföldunarfrumvarps á Alþingi í nóvember í fyrra
- Stjórnarráð Íslands (Government of Iceland) in Icelandic
- mbl.is (first reported) in Icelandic
Image: cogdogblog / Wikimedia Commons (CC0) · licence, original (resized) Illustrative image.
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