Hvalávirkjun Hydropower Project
Project details
Project name: Hvalávirkjun Hydropower Project
Project location: Árneshreppur Municipality, Iceland
Installed capacity: 55 MW
Project owner: VesturVerk
Assessment details
Assessment tool: Hydropower Sustainability Standard
Assessment stage: Preparation
Assessment date: 2 - 11 September 2024
HSS Assessment Report:
Gap Resolution Report
Assessor team
Sustainability assessment overview
The Hvalávirkjun project in Iceland is a proposed hydropower development aimed at strengthening the security of energy delivery on a regional level and replace diesel-generated electricity in the Vestfjords with clean energy. Though Iceland already produces abundant electricity, this project addresses a clear local need. It has been prioritised nationally and is progressing through early planning, with environmental and social safeguards still being developed.
Key concerns include divided community opinion, likely impact on untouched wilderness, and the need to protect biodiversity. However, strong governance, detailed environmental studies, and updated consultation efforts are in place. If planning continues as intended, the project could sustainably support Iceland’s energy needs and climate goals.
The public consultation period on the Preliminary Assessment Report of Hvalávirkjun Hydropower Project is open from 18 August to 17 October 2025.
Submit your comments in ENGLISH or ICELANDIC
Evidence of the distribution of the assessment report to provide comments is available here.
Learn more about VesturVerk.
