Skeiða- and Gnúpverjahreppur council approves construction permit for Hvammsvirkjun hydroelectric power plant in Iceland

The local council of Skeiða- and Gnúpverjahreppur has granted Landsvirkjun a construction permit for the Hvammsvirkjun hydroelectric power plant. This approval comes after the municipality had previously issued a permit but faced delays due to regulatory reviews. The site for the power plant is located at the border of the two municipalities.

The Hvammsvirkjun project has been under consideration for two decades, undergoing various administrative hurdles. In December 2022, the National Energy Authority granted construction permission, but it was annulled by an environmental tribunal, which raised concerns regarding the legitimacy of the permit process. A new operating license was subsequently issued in September 2023.

The proposed Hvammsvirkjun is set to be situated in the Þjórsá river area and will have a capacity of 95 MW. The annual energy production is expected to reach approximately 740 GWh, which would account for nearly 4% of Iceland’s current energy output.

This project is seen as significant for Iceland’s energy sector, particularly following widespread electrical disturbances that underscored the need for enhanced infrastructure in the power grid. As the country navigates its energy future, developments such as Hvammsvirkjun are critical for maintaining a stable and sustainable energy supply.