Making Space

Ninna Pálmadóttir film director

Scene: A grey, Icelandic country road on a grey, Icelandic day. A middle-aged, bearded farmer drives a middle-aged, dusty jeep down the turn-off leading to his farm. After a short distance, the gravel road submerges into a lagoon half a metre deep. The farmer drives on without a second thought. He only stops when he […]

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Collective Agreement Negotiations Suspended

vr union iceland, Ragnar Þór Ingólfsson

The labour movement cannot drive down inflation alone, the chairman of Iceland’s largest labour union told Vísir. He says wage negotiations have been put on hold due to announced municipal fee hikes as well as what he calls the government’s inaction. Inflation has measured 8% over the past 12 months in Iceland and rose by 0.1% last month.

The aim of labour and business representatives was to complete a new collective agreement by January 31, when the current short-term agreement expires. It is customary for Icelandic municipalities to announce changes to their fees annually, and these changes normally take effect on January 1. VR Union Chairman Ragnar Þór Ingólfsson says unions will have to re-examine the situation once these fee changes have been confirmed, but say that municipalities have proposed fee hikes between 5-30%.

“It’s just a grave situation,” Ragnar Þór stated. “We are going backwards. The government regarding housing issues, regarding fee hikes. We are seeing the cost of living index rise and prices rise. There is upward pressure everywhere. That all somehow works against a good result being reached in the wage negotiations. So all we can do is wait. We can’t be trying to do something alone on some boat in the middle of the ocean when no one is going to participate.”

Electricity Shortage “Unacceptable” Says Environment Minister

Low cost of electricity in Iceland compared with the rest of Europe

Icelandic fish processing plants will need to power their operations with oil and diesel generators for the third winter in a row due to an electricity shortage, Vísir reports. This burning of oil and diesel cancels out all of the emissions saved by electric cars in Iceland thus far. Minister for the Environment and Natural Resources Guðlaugur Þór Þórðarson says the lack of green energy is unacceptable in a country that’s aiming for a green energy exchange.

Guðlaugur Þór says that the current shortage is the result of very few power plant construction projects in Iceland over the past 15-20 years. “This is not acceptable at all and we must do everything we can to resolve this as soon as possible,” he told reporters. The Minister criticised the red tape that delayed the approval of the construction of new power plant projects and called for streamlining the system.

Read More: 2021 Electricity Shortage Impacts Local Industry

Last June, the Environmental and Natural Resources Board of Appeal revoked the construction permit for the proposed Hvammsvirkjun hydropower plant in South Iceland, after the local council decided to review new information on the plant’s potential environmental impacts. The Board of Appeal emphasised that the National Energy Authority (Orkustofnun) had not followed the guidelines of the Water Council when preparing to issue a permit to the hydropower plant.

The Hvammsvirkjun plant would have an estimated capacity of 95 MW. For comparison, Iceland’s largest hydropower plants are the Kárahnjúkar and Búrfell plants, with respective capacities of 690 KW and 270 KW. Both were built to provide power to aluminium smelters. Hellisheiði Power Station is Iceland’s largest geothermal power plant, with a capacity of 303 MW.

Data centres use more electricity than Icelandic homes

There are also those who are sceptical of the need for additional power plants in Iceland, shifting the attention to energy-intensive industries that arguably contribute little to the country’s GDP. Snæbjörn Guðmundsson of the nature conservation organisation Náttúrugrið has expressed concern that the proposed Hvammsvirkjun hydropower plant would be used towards Bitcoin mining, a growing industry in Iceland. The National Power Company has stated that it would not build power plants for the express purpose of providing energy to Bitcoin mining companies.

Data centres (of which Bitcoin mining centres are a subcategory) in Iceland use 30% more energy than all Icelandic homes put together, and while the percentage of this energy that goes toward Bitcoin mining is not public knowledge, it could be as high as 90%.

Icelandic Language Strengthened in “Landmark” Initiative

Guðmundur Ingi Guðbrandsson, Lilja Alfreðsdóttir, Katrín Jakobsdóttir

The Icelandic government has announced what it is calling a “landmark” initiative to strengthen the Icelandic language. The initiative includes 19 measures to support the preservation and development of Icelandic, many aimed at supporting immigrants’ language learning. Expected to cost at least ISK 1.4 billion [$9.9 million; €9.1 million], the initiative will receive additional funding over the coming years.

The initiative was announced at a press conference yesterday by Prime Minister Katrín Jakobsdóttir, Culture and Trade Minister Lilja Alfreðsdóttir, and Social Affairs and Labour Minister Guðmundur Ingi Guðbrandsson. It is a collaborative project between five ministries and was developed in a cross-ministerial committee on the Icelandic language established last November. The initiative will be introduced to Parliament as a parliamentary resolution in the coming days.

Icelandic as a second language support

The 19 measures of the initiative include work-related Icelandic lessons for immigrants alongside work, improving the quality of Icelandic education for immigrants, and establishing online studies in Icelandic and Icelandic as a second language. One of the measures is supporting Icelandic language education for staff of preschools and after-school centres. The initiative also aims to provide additional support for Icelandic language technology as well as Icelandic subtitling and dubbing.

Iceland Review has regular coverage of the latest in Icelandic language programs and policies. For more on the government policy surrounding Icelandic language education for immigrants, read Nothing to Speak Of.