In a significant development for Iceland's renewable energy sector, two hydroelectric power plants in South Iceland, Holt Power Station in Þjórsá and Skrokköldu Power Station near Sprengisandsleið, have been reclassified into the energy utilization category. This change follows the approval of a proposal by Jóhann Páll Jóhannsson, the Minister of Environment, Energy, and Climate, which was accepted by the Alþingi, Iceland's parliament. This decision indicates a step forward in the country’s commitment to utilizing its abundant natural resources for green energy generation.

The announcement reveals that there were also discussions regarding certain projects that the framework plan's project management had recommended for protection classification. Specifically, the Kjalölduveita in the southern Þjórsá Valley and hydroelectric options in Héraðsvötn in Skagafirði were proposed to be put in a waiting category as further studies are needed. The Minister's suggestion for these projects to remain in a waiting status was unanimously accepted, showing a cautious approach toward balancing development and environmental considerations in the region.

Additionally, it was noted that the Urriðafoss Power Station will remain in the waiting category as well, following a proposal from the majority of the Environment and Transport Committee. This ongoing examination suggests that the Icelandic government continues to evaluate the implications of renewable energy projects carefully, understanding the importance of sustainability and the careful management of natural resources as they move forward with energy development efforts in the country.