At the end of last year, a more than two‑year process of international HSS sustainability assessment for the preparatory phase of the Hvalá Hydropower Project in the Strandir region was completed. The assessment involved a detailed review by international evaluators who visited Iceland in autumn 2024, held discussions with a broad group of stakeholders, examined the project’s preparatory documentation, and inspected the proposed project area.
Following an open consultation period, the final assessment report has been published by the Hydropower Sustainability Alliance (HS Alliance), and the project has received the organisation’s Gold Certification. This is only the second time that such a gold rating has been awarded for a hydropower sustainability assessment in Iceland. The Hvalá Hydropower Plant in Ófeigsfjörður, Árneshreppur, is classified as a utilization area in Iceland’s Master Plan and has been under preparation by VesturVerk, a subsidiary of HS Orka, for many years.
Open Consultation Process
The sustainability assessment evaluates ten preparatory aspects of the project, measuring both compliance with minimum requirements and alignment with the highest performance criteria of the Hydropower Sustainability Standard (HSS).
A draft assessment report was open for public consultation from August to October 2025, giving stakeholders the opportunity to submit comments. A summary of the feedback and the evaluators’ responses has been published alongside the final report on the project page hosted by the HS Alliance.
Mitigation Measures to Minimize Negative Impacts
The assessment highlights the various preparatory components of the project and places them in the context of the remote environment and sensitive local community that the hydropower plant will affect. It also emphasizes the importance of mitigation measures and continued development of plans and actions aimed at minimizing negative impacts and maximizing positive outcomes for the community.
Meeting Regional Energy Needs
In its announcement of the certification, the HS Alliance provides a clear overview of the assessment process, noting:
“This is a 55 MW hydropower project owned by VesturVerk that remains in the preparation phase. The project is intended to strengthen the electricity system in the Westfjords and reduce reliance on diesel‑based power generation. Although Iceland already produces a high share of renewable electricity, it is clear that the Hvalá Hydropower Plant can meet a well‑defined regional energy need. The project is more economically viable and climate‑friendly than diesel generation.
The Gold Certification of the Hvalá Project highlights the value of conducting sustainability assessments early in the preparation phase to ensure that sustainability issues are clearly identified and addressed in time.”
