From the EIB's website:
The operation is a multicomponent investment project consisting of two projects to extend the 220 kV power transmission grid in the north-eastern part of Iceland. The first project, Kröflulína 3, comprises the construction of a 121 km long 220 kV overhead transmission line between Krafla and Fljótsdalur, the modifications to the 220 kV substation at Krafla and extension of the 220 kV substation and an underground cable link at Fljótsdalur substation. The second project, Hólasandslína 3, comprises a 62 km long 220 kV overhead line, a 10 km long 220 kV underground cable, construction of a new 220 kV substation at Rangárvellir, Akureyri and the construction of a new 220 kV substation at Hólasandur.
The Kröflulína 3 line crosses c:a 150 m of the national park Vatnajökulsþjóðgarður. This is the narrowest part of the park and no masts will be in the protected area. The main impact is visual and the park’s protection plan already assumes the power line. The Kröflulína 3 line will cross about 480 m of the Nature conservation area of Mývatn and Laxá, again without masts erected in the area. The main impact will be visual impacts and possible impacts on birds (collisions).
The Environmental Agency of Iceland has issued a permit for the project in the area.
The project will cause disturbance to about 20 ha of wetlands, where 12 ha are protected based on on Article 61 in the Nature Conservation Law. The promoter will compensate by restoring the same area of wetland in another location as a mitigation action. The project will also cause disturbance to about 18 ha of young lava which is protected based on the same law. A small population of reindeer lives near the line, which will cross the reindeers' passage but the line is considered not to have any impacts on them.
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