Category A project

Power transmission lines Krafla-Fljótsdalur and Akureyri-Hólasandur

Country: Iceland
Borrower: Landsnet Hf.
Sector: Energy & environment
Published for 30 days on: 20 Apr 2021
Planned date for decision by Board of Directors: 10 Jun 2021

Project summary

Landsnet is extending the 220 kV power transmission grid in the north-eastern part of Iceland as part of a larger goal, which is to strengthen the transmission system between eastern, northern and south-western parts of Iceland to increase transmission capacity, stability and reliability of the system.

The investments include two 220 kV power transmission lines: Kröflulína 3 between Krafla and Fljótsdalur and Hólasandslína 3 between Akureyri and Hólasandur. The Kröflulína 3 project comprises the construction of a 121 km long overhead line, modifications to the 220 kV substation at Krafla and an extension of the 220 kV substation and an underground cable link at Fljótsdalur substation. The Hólasandslína 3 project consists of the construction of a transmission line partly as an overhead line (62 km) and partly as an underground cable (10 km), as well as the construction of 220 kV substations at Rangárvellir and Hólasandur. Both new lines will be constructed mostly parallel to the existing 132 kV lines. The construction of Kröflulína 3 began in 2019 and is planned to be commissioned in 2021. The construction phase of Hólasandslína 3 commenced in 2020 and commissioning is planned at the end of 2021 or early 2022.

The environmental impact assessments (EIA) of the projects Kröflulína 3 and Hólasandslína 3 were completed in 2017 and 2019, respectively. The municipalities through which the Kröflulína 3 is routed (Fljótsdalshérað, Fljótsdalshreppur and Skútustaðahreppur) granted the development permits in 2019 and the municipalities affected by Hólasandslína 3 (Akureyri, Eyjafjarðarsveit, Þingeyjarsveit and Skútustaðahreppur) granted the permits in 2020. Both transmission lines are included in Landsnet’s Network Development Plan and the land use plans of the affected municipalities that underwent the procedure of strategic environmental assessment.

According to the project EIA, the most significant negative environmental impacts of the Kröflulína 3 project include local and, in some cases, permanent impacts on wetlands and lava fields with conservation value. The transmission line route will also cross the National Park of Vatnajökull over a length of 150m, yet the impact on the conservation value of the park is considered insignificant.

The most significant negative environmental impacts of the Hólasandslína 3 project include local and, in some cases, permanent impacts on wetlands and heathlands. The project is also assessed to have some negative impact on birds, especially ducks in Laxárdalur and ptarmigans in the heaths, due to potential collisions with the power line during operation.

NIB welcomes comments on the project in question.

Below are links to the Environmental Impact Assessment (EIA) Reports in Icelandic. See also links to the Conclusions of the Icelandic National Planning Agency on the Environmental Impact Assessment (EIA) Reports in Icelandic and English (unofficial translation):

NIB welcomes comments on the project in question.

Project sponsor contact information
Gylfaflöt 9
112 Reykjavik

NIB contact information
Please write "Category A project" in the subject field.
Nordic Investment Bank
Environmental Unit
P.O. Box 249
FI-00171 Helsinki

This document was prepared and disclosed at an early stage of NIB's review of the project, before consideration by NIB's Board of Directors. Details of the project may change following disclosure.
The Environmental Impact Assessments (EIA) and EIA summaries are produced by the project sponsors, and NIB makes them available without any comment or implied endorsement. Any views expressed or statements made in the EIA or the EIA Summary do not necessarily reflect the views or opinions of NIB.