They are expecting a small to medium scale eruption from everything I've seen so should be line roughly with the above.
They are extremely concerned about the possible ash fall and disruption to the airport, tourism (The Blue Lagoon is very close to this - the road to Grindavik is the road to the The Lagoon and the power station), the road network, the power supply network and agriculture.
So far, everything is lining up to be close to the worse case scenario based on the above - but this isn't set in stone. The location of the magma is 'sub-optimal' to say the least though.
See this key bit of the above:
Proximal areas (<30 km distance from source)
Heavy tephra fall, in range of 30-100 cm in Reykjanes (i.e. if source is close to the SW-shore) to c. 3-6 cm 20-30 km away from source.
Air traffic might be disrupted to some extent.
Both the Reykjanes and Svartsengi geothermal power plants are sited on recent lava flows.
Pipelines and power lines might be severed due to faulting. The town of Grindavík is situated on Holocene lavas 1-2 km south of the Svartsengi volcanic system.
Ground transportation might be disrupted due to tephra fall, lava flows and faulting.
The main route to the international airport at Keflavík might get blocked.
For reference Reykjavik is roughly 40km as the crow flies from Grindavik. Klefavik is just 18km and to the East which is the direction they are worried about.
The biggest issue is how long an eruption might last really - they don't know. The first eruption since the area became active again was a good few months though the subsequent ones have been shorter.
Keep in mind how the tourism sector is one of Iceland's biggest. Last year some 6million people passed through Klefavik. (2018 was the peak with 9million) The airport being affected is a MASSIVE deal for Iceland. Already the krona has taken a hit over concerns about an imminent eruption.