The regulatory framework in Iceland regarding environmental impact assessment and necessary permits must be taken into account at different stages of planning and preparing geothermal power plants. Before deciding on exploitation the next stage following recognition of a feasible geothermal area is the drilling of exploration wells to investigate and model the capacity of the geothermal resources. In some areas the developer must carry out an EIA on exploratory drilling before necessary permits aregranted. An EIA is always required before permits are granted for construction of a new geothermal power plant. A study of comparable exploratory drilling projects in three geothermal areas in Iceland reveals great differences in how long it takes developers to obtain the necessary permits. In one case the developer??s choice of drill site was not accepted after two EIA processes. Another project was accepted following an EIA buthas not yet been granted necessary permits to start drilling. At the third location permits have been granted for the drilling of seven exploration wells without an EIA being required. A definitive national policy and plan on utilization in geothermal areas would support developers in planning future geothermal power plants and prevent costly investigations during the exploratory stages if they are unlikely to lead to exploitation.

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