Memorandum of Understanding on energy cooperation.
Today Mr. Steingrímur J. Sigfússon, Minister of Industries and Innovation in Iceland and Mr. Johan Dahl, Minister of Trade and Industry in the Faroe Islands, signed a Memorandum of Understanding (MoU) on cooperation in the energy sector.
In the MoU the two countries express their willingness to continue to explore the possibility of developing an electricity interconnection between Iceland and the Faroe Islands, including legal and regulatory aspects. A part thereof will be a continuation and update of the joint feasibility study of the Faroese Earth and Energy Directorate (Jarðfeingi) and the National Energy Authority of Iceland (Orkustofnun) from November 2007 („Indledende vurderinger af muligheden for at lægge elkabel fra Island til Færøerne“). The aim is for the study to be concluded by 1 January 2014.
Evidently, an electricity connection is of strategic significance, creating mutual benefits for the two countries. One of the key advantages is the prospect of Faroese electricity consumers purchasing renewable energy from Iceland, whilst Iceland can generate revenue from surplus electricity production. The signing took place in Helsinki, where the Ministers attend the Session of the Nordic Council.