Hvalávirkjun Hydropower Project, Iceland, certified Gold under the HSS
The Hvalávirkjun Hydropower Project in Árneshreppur Municipality, Iceland, has been awarded Gold certification under the Hydropower Sustainability Standard (HSS), recognising its strong performance in governance, environmental studies and stakeholder engagement.
The 55 MW project, owned by VesturVerk, is in the early planning stages and is designed to strengthen the power system in the Westfjords and reduce diesel-generated energy. While Iceland already produces abundant clean electricity, Hvalávirkjun addresses a clear regional need while offering a cost-effective and low-emission alternative to diesel.
The project has been prioritised nationally and is progressing through planning with environmental and social safeguards under development.
Planning and mitigation measures
The HSS assessment highlighted strong governance structures, comprehensive environmental and social planning, and robust labour-management policies inherited from HS Orka, VesturVerk’s majority owner.
Climate resilience is integrated into project design, hydrological resources are carefully modelled, and impacts on water quality, biodiversity and cultural heritage are being carefully managed.
At the same time, the assessment noted challenges typical of early-stage projects, including divided community opinions and the need to protect largely untouched wilderness areas. VesturVerk has put steps in place for mitigation measures and continued stakeholder engagement through updated consultation and communication plans.
The value of early-stage assessments
“Hvalávirkjun’s Gold certification shows the value of undertaking assessments in the earliest stages of a project to ensure that sustainability measures are well integrated before challenges can escalate,” said João Costa, Executive Director of the Hydropower Sustainability Alliance.
“The project shows how careful planning, robust governance and transparent stakeholder engagement from the beginning can ensure it is developed responsibly, respecting the diverse perspectives of all stakeholders.”
Ásbjörn Blöndal, Chairman of the Board of VesturVerk, said: “We at VesturVerk and HS Orka are honoured to receive this recognition for the work carried out so far in developing the Hvalárvirkjun Hydropower Project.
“The assessment process proved quite insightful and valuable for our team, providing us with numerous observations that can positively influence the project’s long-term success and sustainability.
“We remain committed to responsible hydropower development and will continue to approach the project with care and consideration for long-term sustainability and the interests of the community.”
Hvalávirkjun is the second hydropower project in Iceland to achieve Gold certification, following the Fljótsdalur Hydropower Project last year.
You can find out more on the Hvalávirkjun Hydropower Project assessment profile.
