The Planning Agency states that a proposed hydropower plant in Geitdalur valley will dramatically change the area's appearance. The untouched valley will gain a man-made character after construction.
The 9.9 megawatt plant will feature a dam west of Hesteyrarfjall mountain. It will produce about 56 gigawatt-hours of electricity annually.
Eleven institutions and ten individuals provided feedback during the consultation period. The agency acknowledges the environmental impact assessment was well-prepared.
Yet officials express clear concerns about the project's effects. They note it will negatively impact pristine highland landscapes stretching into central Iceland.
Roads, dams, power stations and reservoirs will create major visual changes. Waterfalls and protected wetlands will disappear under reservoir waters.
Flow in waterfalls below the dam will decrease significantly. The experience for outdoor enthusiasts seeking natural environments will likely diminish.
This development contradicts Iceland's nature conservation goals. The Planning Agency completed its review late this summer.
Geitdalsvirkjun ehf. still needs all permits before construction can begin. The company prepared the environmental assessment for the proposed project.
Why build in an untouched valley when Iceland already generates ample renewable energy? The answer likely involves economic interests rather than energy needs.