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it controversial15. Environmental Issues The power plant is located in the highlands of Iceland. This was the second largest untouched wilderness area in Europe and covered about 1000 km2. Tourists come to Iceland to experience its nature and this sector of the economy contributed about 4.1 % of Iceland’s GDP in 2006. In 2001, the Icelandic Planning Agency rejected the project based on an environmental impact review, but the Minister for the Environment approved the project after additional demands had been met. In particular, Alcoa pledged to support the establishment of a protected area near the project. In 2005 Iceland announced the creation of a large national park in Southeast Iceland that was subsequently established in 2008. Workforce Workers from European Union countries do not need a work permit in order to work in Iceland. The Italian company Impregilo was the largest contractor working on the Kárahnjúkar dam. The company brought 400 operators from China, 300 from Portugal and more than 100 Italian staff to supplement local labor. The total workforce to build the dam was 1,100 people. 1,750 people built the Fjardaál aluminum plant. Policy Infrastructure Iceland In the course of less than a century, Iceland went from being a country entirely dependent on imported energy, to a country that derives 82% of its primary energy from domestic, renewable resources. The reason renewable energy development was so successful was because of “strong supportive policy and strategic government planning”16. It is the policy of Iceland to increase the utilization of renewable energy resources. To accomplish this, the Ministry of Industry, Energy and Tourism and the Ministry of the Environment jointly initiated a comprehensive energy strategy. Many power plants were built without much public opposition, but things changed when the state renewed old plans for a hydroelectric power plant in Fljótsdalsvirkjun. The state claimed it did not need to do an environmental impact assessment (EIA) because the original plan predated EIA legislation. NGO’s and the public were outraged in 1997, and plans 15 Johnson et al., 2012 16 Ketilsson et al., 2012. 15PDF Image | Geothermal and Hydroelectric Energy in Iceland and Alaska
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