Image courtesy of the Hydropower Sustainability Alliance
The Hvalávirkjun hydropower project in Árneshreppur Municipality, Iceland, has been awarded gold certification under the Hydropower Sustainability Standard (HSS), recognising its performance in governance, environmental and social planning, and stakeholder engagement.
The 55MW project, developed by VesturVerk, is in the early planning phase. It is intended to strengthen the electricity system in Iceland’s Westfjords and reduce reliance on diesel-generated energy. While Iceland already produces large volumes of renewable electricity, the project is positioned as a regional solution to improve supply security and lower emissions.
Hvalávirkjun has been prioritised at the national level and is progressing through the planning process, with environmental and social safeguards currently being developed.
The HSS assessment highlighted strong governance arrangements and labour-management policies, drawing on practices from HS Orka, the majority owner of VesturVerk. It also noted comprehensive environmental and social studies at this early stage of development.
Climate resilience has been incorporated into the project design, with detailed hydrological modelling underway. Potential impacts on water quality, biodiversity and cultural heritage are being assessed, and mitigation measures are being planned accordingly.
The assessment also identified challenges typical of early-stage hydropower projects, including differing views within the local community and the need to safeguard largely untouched wilderness areas. VesturVerk has developed mitigation measures and updated consultation and communication plans to support continued stakeholder engagement.
“Hvalávirkjun’s Gold certification shows the value of undertaking assessments in the earliest stages of a project to ensure that sustainability measures are well integrated before challenges can escalate,” said João Costa, Executive Director of the Hydropower Sustainability Alliance.
“The project shows how careful planning, robust governance and transparent stakeholder engagement from the beginning can ensure it is developed responsibly, respecting the diverse perspectives of all stakeholders.”
Ásbjörn Blöndal, Chairman of the Board of VesturVerk, said: “We at VesturVerk and HS Orka are honoured to receive this recognition for the work carried out so far in developing the Hvalárvirkjun Hydropower Project.
“The assessment process proved quite insightful and valuable for our team, providing us with numerous observations that can positively influence the project’s long-term success and sustainability.
“We remain committed to responsible hydropower development and will continue to approach the project with care and consideration for long-term sustainability and the interests of the community.”
Hvalávirkjun is the second hydropower project in Iceland to achieve Gold certification under the HSS, following the Fljótsdalur Hydropower Project last year.
