Today, 10 November, marks the one year anniversary of the devastating string of earthquakes that triggered the immediate evacuation of the town of Grindavík in the Reykjanes peninsula. Six volcanic eruptions have taken place in Sundhnúksgígar since activity began and many Grindavík residents remain without a permanent secure home.
Heavy financial costs
A new report from Prime Minister Bjarni Benediktsson outlines the costs and looks to the future of Grindavík. The total expenditure and investment costs of the Icelandic state as a result of this are estimated at ISK 80 billion ($580 million, €538 million) for the years of 2023 and 2024.
The largest part, ISK 51.5 billion ($373 million, €346 million), is related to Þórkatla, the public investment company that has bought the residential properties of the Grindavík inhabitants who wish to sell.
A further ISK 9.9 billion ($72 million, €67 million) was spent on protective barriers to decrease the likelihood of further damage to Grindavík or the Svartsengi area, Mbl.is reports.
Earthquake devastation
The majority of Grindavík properties, however, have sustained no or little damage. In fact, some people still choose to remain in their homes, despite the regular threat of a new eruption.
63 properties were damaged beyond repair. A total of 523 cases are being processed by the Natural catastrophe insurance of Iceland, 363 of them relating to residential housing. Most of the damage was in fact done by the earthquakes, rather than the flowing lava that notably reached three houses during one of the eruptions.
100 residents remaining
According to the Prime Minister’s report, decisions will need to be made about the future of the Grindavík municipality, whose finances will otherwise be devastated. Even with 1,600 residents registered, the real population of Grindavík seems to be closer to 100. Municipal elections are coming up in 2026 and decisions will need to be made in time.
Regarding any reconstruction of the town, the report advises patience, as it is unclear for how long volcanic activity will continue.
