Investments in the energy and utilities sector over the next five years are equivalent to twice the cost of a New Treatment Hospital (Nýr Landspítali) or ten times the cost of Fjarðarheiðar tunnel.
The country’s energy and utility companies will invest 483 billion isk.kr.over the next five years, according to a survey conducted by Samorka, the association of energy and utility companies, among its member companies and presented at the association’s annual meeting yesterday. For comparison, the amount is equivalent to twice the cost of the New Treatment Hospital (Nýr Landspítali) or ten times the cost of Fjarðarheiðar tunnel
According to the survey, the largest part of the investments will go to the production, transmission and distribution of electricity, or 300 billion isk.kr.. Investments in heating utilities amount to 93 billion isk.kr. , sewage 49 billion isk.kr. and water utilities 40 billion isk.kr. .
Together, they are to ensure the necessary development, maintenance and advancement of infrastructure in accordance with the energy transition, population growth and increased demand in society for safe and sustainable services.
Have failed in their basic duty
A resolution approved at the Samorka general meeting earlier today welcomes the current government’s emphasis on green energy generation, strengthening infrastructure and thereby increasing opportunities in energy exchanges and climate issues. On the other hand, the government has so far failed in its basic duty to ensure energy security.
“Various analyses by the most capable parties have shown for years that there is a significant imbalance in the country’s energy economy. Relevant points of view are met with skepticism and disbelief. The government must take action to ensure electricity security in the short term if energy on the market is under pressure,” the resolution says.
Electricity security must be ensured in the short term and for the future, as it is important that administrative processes work with energy and utility projects but do not directly stand in the way of projects that are ready for implementation.
Increased taxes can reduce investment
The licensing and planning process needs to be simplified, and we look forward to developments in Europe regarding the framework for energy transmission and energy production from renewable energy sources, where production, transport and distribution are in the interests of the most urgent public interest.
Municipalities, like the state, must then show responsibility for their role in the development of energy and utility infrastructure, taking into account their planning and licensing powers, in order to overcome the imbalance of supply and demand that the current framework has caused.
“Around the world, municipalities play a key role in leading their nations’ energy transition. Samorka supports the view that municipalities and their residents benefit from the development of electricity production in their vicinity. These goals will not be achieved by increased taxes, but by a more equal distribution of tax revenues between the state and municipalities,” the resolution states.
In further processing the government’s resource and tax proposals, it must be borne in mind that increased taxes on electricity production can reduce investments at the same time as it is clear that there is a need for a major development in electricity production. It must also be noted that the energy and utility sector already delivers significant financial benefits to society.
Need for change everywhere
The resolution also draws attention to the importance of energy in the changing international reality, the need for diverse green energy options and measures to ensure competitiveness and a sensible regulatory framework. It also advocates the abolition of the protection and energy efficiency plan, calls for a clearer vision for geothermal exploration to meet future hot water needs, emphasizes strengthening electricity transmission and distribution systems, and considers fresh drinking water and the future of sewage systems.
The resolution can be accessed in its entirety here.
Source: Vb.is
