Looking up Eyrarteigsá from the highway. Eyrarteigur to the left, Hryggstekkur to the right. Hallsteinsdalur lies to the upper right between the mountains. Photo: GG
Permit granted for research on power plant in Eyrarteigsá
News • Gunnar Gunnarsson • First published 29 Jun 2026 17:19 • Updated 29 Jun 2026 17:20
The company Afl og orka has received a permit to research a potential power plant in Eyrarteigsá in Skriðdal. Studies on the power plant option are at an early stage, so much is unclear, for example the size of the plant.
The river separates the farms Eyrarteigur and Hryggstekkur in Skriðdal, but it falls from the mountains above down Hallsteinsdalur and into Grímsá. Owners of both farms have signed an agreement with the company for research, but it appears in the permit documents that the landowner of Eyrarteigur has long been interested in exploring the river's potential for power generation.
Most is still unclear about the power plant option other than that the installed capacity will be under 10 MW. The documents assume that the powerhouse will be just above the residential house at Eyrarteigur.
What to research?
The plant would be well located considering that it is only 300 meters from the powerhouse to the Landsnet substation at Hryggstekkur where the local power line runs. The idea is a dam at the outer end of Hallsteinsdalur, directly above the substation.
It is proposed that the dam will be 130 meters long and 25 meters high. This would create a 9-hectare reservoir. The water will be led from it to the powerhouse in a 1,500-meter-long pipe, providing a head of 150-200 meters. In Afl og orka's application, it says that among other things, the size of the dam needs to be assessed.
The research area roughly extends from the Eyrarteigur farm almost up to the peak Skúmhetta. The company intends to make detailed maps of the area, measure the river's flow, and investigate the geology, both to find suitable construction material and to locate potential structures.
Reports will be prepared on impact factors such as vegetation, birdlife, geological formations, water bodies, river ecology, and archaeology. In 1995, a stone burial was found on the land of Eyrarteigur, right by the banks of Þórisá, which is the next river beyond Eyrarteigsá.
Drawing of a potential power plant. The powerhouse is the yellow dot, the pressure pipe green, the dam red, and the reservoir blue. Image: Afl og orka
Institutions emphasize good conduct
The institutions that provided comments on the research permit emphasized the importance of treating the area well during research. The Natural History Institute pointed out that the river is within the Hjálpleysa Wildlife Sanctuary, which is listed in the Natural Heritage Register of Fljótsdalshérað, and also within the Þingmúla volcano system, which the institute had wanted to protect. The river contains waterfalls that enjoy protection and habitats that are protected. The institutions note that the area is relatively undisturbed but also limitedly researched. Afl og orka believes there is little fish passage in Eyrarteigsá, but trout is found in Grímsá.
The permit is granted for five years. The company must annually submit information on the progress of research to the Environmental and Energy Agency.
Afl og orka is a company founded two years ago. It shares owners with Rafal, one of the largest electrical contracting companies in the country. It was founded in Búðardalur over 40 years ago but now has its headquarters in Hafnarfjörður. Afl og orka recently signed an agreement with Síldarvinnslan for research on power plant options in Fannardalur in Norðfjörður.
The research area is marked with red lines. Image: Environmental and Energy Agency
