Iceland opens applications for grants under ISK 1 billion geothermal initiative
Jóhann Páll Jóhannsson, Minister of the Environment, Energy and Climate of Iceland (source: Government of Iceland)
Carlo Cariaga
1 Apr 2025
Applications are now being accepted for grants under Iceland's Geothermal Leveling the Game initiative which seeks to fund geothermal heating projects.
The Government of Iceland has opened the application for grants for the “Geothermal Leveling the Game initiative”, a program that is offering ISK 1 billion (approx. USD 7.5 million) for efforts to explore and utilize geothermal energy in the years 2025-2028. The application deadline is on the 1st of May 2025.
Recently announced by Jóhann Páll Jóhannsson, Minister of the Environment, Energy and Climate, this is the largest geothermal initiative that has been undertaken in Iceland this century.
Emphasis is placed on supporting the use of geothermal energy for general heating in areas where electricity and/or oil are currently used for heating. About 10% of households in the country are in so-called cold areas, and the Treasury spends over 2.5 billion ISK annually on subsidizing heating in these areas.
The grants that have now been announced will be awarded to municipalities, energy companies, or parties working on their behalf. When awarding grants, consideration will be given to whether there is already some knowledge of geothermal energy in the area in question and whether there is evidence that hot water can be found that can be used directly in the district heating system, or warm water in sufficient quantities to be used in a central heat pump in the area.
The grant amount for each project can be up to two-thirds of the total project cost, with a matching contribution from the applicant. The projects can focus on initiating exploitation where appropriate, or on further research with reference to previous results.
Source: Government of Iceland
