Decommissioning of the Elliðaár Power Plant

Power generation at the Elliðaár power station ceased in 2014 after the penstock, which transported water from the Árbær dam to the power station, ruptured. It was declared beyond repair.

Subsequently, it was examined whether repairing it would be cost-effective, but the conclusion was negative; electricity from the station would be so expensive that finding a buyer for it would be difficult. In 2019, it was decided that electricity generation would not resume in the foreseeable future. An idea competition was then held for a new role for the structures, all of which had been listed as protected in 2012. The development under the banner of Elliðaárstöð is the result of that work.

Restoration of Natural Assets in Elliðaárdalur Valley

When it became clear that electricity generation would not resume, it was decided in the autumn of 2020 to stop the annual, man-made fluctuations in the surface of Árbæjarlón lake and to drain it for good. Although this action was controversial, it has yielded the intended results. All research indicates that it has proven beneficial for the ecosystem, especially for the salmon in the rivers. The City of Reykjavík, which owns Elliðaárdalur valley and the Elliðaá rivers, appointed a steering committee to make proposals about the future of the valley. Following the publication of the committee's proposals in 2021, Orkuveita Reykjavíkur (Reykjavík Energy) established a special project on the Restoration of Natural Qualities in Elliðaárdalur. Since then, there has been formal cooperation between Orkuveita Reykjavíkur and the City of Reykjavík on the progress.

The Water Act

When electricity generation from the Elliðaár rivers ceased, the section of the Water Act concerning the decommissioning of structures was activated. According to it, Orkuveita Reykjavíkur is obliged to submit a decommissioning plan to Orkustofnun (the National Energy Authority) and have it approved. The law states in no uncertain terms: “Upon decommissioning, the environment shall be restored to its former state as far as possible.”

This created a conflict between the provisions of the Water Act – to restore the valley and the rivers to their pre-power plant state – and the Building Protection Act, which was behind the extensive conservation of all the power plant structures at Elliðaár, decided in 2012. In consultation meetings with representatives from the Cultural Heritage Agency of Iceland, the National Energy Authority, residents of nearby neighbourhoods, and other stakeholders, a middle ground was found whereby significant changes could be made to the structures with the most negative environmental impact – the Árbær dam and the intake pipe. This became the conclusion of the Cultural Heritage Agency in late 2023 after receiving an opinion from the Building Protection Committee. Following this, further development of the changes is being carried out in parallel with planning amendments.

Detailed planning process

The current local plan reflects power generation from the rivers. This needs to be changed. As there are few precedents for decommissioning power plants, Orkuveita Reykjavíkur requested that the City of Reykjavík combine the work on the decommissioning plan and the local plan. Local planning processes are well-known, predictable, and open to public participation. In early 2023, Reykjavík's Environment and Planning Committee decided not to object to the two processes running in parallel.

The detailed planning process in the planning portal

Data

Numerous documents have been prepared in anticipation of the decisions that have already been made and those yet to be made. Here are links to the main ones.

Verkís Memo - Draining of the lagoon at Árbær Dam - impact on birdlife - 2020
Verkís Memo - Waterfowl Count on the Elliðaá Rivers - 2021
City of Reykjavík - Bird Monitoring at Árbæjarstífla Dam - 2022
Salmonids - Fish surveys in Árbæjarkvísl - 2022
Verkís Report - Elliðaár Power Plant - Condition Assessment
Verkís Report - Árbæjarstífla Dam - Options Analysis
Verkís Report - The Story of the Árbær Dam
Report of the Steering Group on the Elliðaá Rivers
Agreements between the City of Reykjavík and Orkuveitan and Veitur and related documents
Residents' meeting in Elliðaárdalur on 22 May 2024 – presentation by Orkuveitan
Residents' Meeting in Elliðaárdalur May 22, 2024 – Presentation by the Department of Environment and Planning