Icelandic National Energy Authority issues power generation license for Hvammur hydropower plant in Þjórsá river

The Icelandic National Energy Authority has issued a power generation license for the Hvammur hydropower plant in the Þjórsá river. Following this decision, Landsvirkjun, Iceland’s state-owned power company, will apply for a construction permit from local authorities in Rangárþing ytra and Skeiða- og Gnúpverjahreppur. The plant is projected to begin operations by the end of 2028.

Additionally, the Authority has authorized an expansion of the Sigöldu power station from 150 MW to 215 MW by adding a fourth turbine. Similar construction permits will be sought for this expansion.

Landsvirkjun emphasizes that the expansion of the Sigöldu power station will enhance both the capacity and flexibility of the power grid, although actual energy production increases will depend on higher water flow due to increased glacier melting or rainfall. The completion of the Sigöldu expansion is anticipated by late 2027.

The Hvammur plant will have an output of 95 MW, similar to the geothermal plant at Þeistareykir in Northern Iceland. The license for Hvammur had initially been issued in December 2022 but was contested, resulting in a temporary suspension due to concerns over compliance with water management plans. The Environmental Agency has since provided permission for modifications.

Given delays in the permitting process, Landsvirkjun stresses the need to commence construction as soon as possible to meet the targeted operational date. Ongoing improvements to the Hvammur Road and preparations for the new Búðafoss Road and bridge over the Þjórsá river are underway, along with plans for access roads and utilities for construction workers and the site.