Orkusalan considers hydropower plant at Vatnsdalsá river in Húnavatnssýsla amid local opposition

The state-owned utility company Orkusalan is considering the construction of a hydropower plant at the headwaters of the Vatnsdalsá river in Húnavatnssýsla. This preliminary idea has faced opposition from local farmers and the leader of the fishing club. Disputes over such projects have become a notable theme in Iceland’s history over the past decades.

The planned facility would be situated above Stekkjafoss waterfall, with water returned downstream into Vatnsdalsá. Kristján Þorbjörnsson, chair of the fishing club, firmly stated, “It is clear to me that Vatnsdalsá should not be harnessed,” highlighting the lack of information regarding the project and indicating that the fishing club has not formally addressed the matter yet. He stressed that approval from landowners is essential before any work can commence.

The urgency for increased electricity production in Iceland was reiterated by Orkusalan’s CEO, Magnús Kristjánsson, who noted the growing energy needs in the country. The acquisition of the land Forsælu, where the project is proposed, cost nearly 100 million Icelandic krónur.

Local landowners, which include 50 to 60 members of the fishing club, have historically protected Vatnsdalsá, established nearly 100 years ago to preserve the river’s integrity. There are currently three critical landowners involved, raising doubts about the overall support for the project. Magnús contended that direct backing from landowners of surrounding areas is not a necessity, as securing water rights is paramount for energy generation.

As this debate continues, the social and environmental ramifications of such energy projects remain a point of contention among Icelandic citizens.