The town council of Olafsfjordur decided to harness River Gardsa between the
mounds at the foot of slope Skeggjabrekka for electrical production, and
acquired all the necessary permits for the project. Formal contracts
for a 200 Hp hydroelectric power station were signed on August
and during the autumn foundations for the dam and the town grid were
War II delayed delivery of necessary materials and ruined all plans and
budgets. The contractors signed new contracts for the continuation on the 15th
of July 1941.
It included a 230 Hp station (172 kW). The work, which had been delayed
whole two years, was continued until December the same year. The dam
and the pipeline to the station house at Gardseyri were finished, when
the shortage of necessary building materials stopped the project again.
It was commenced
next spring and proceeded well during the summer. The
generators were installed the nest autumn and on the 19th of
December the power station was inaugurated. Its output was 250 Hp (187
kW), five times larger than the original plans had been based on.
number of inhabitants grew and so did the demand for electricity. The
power station became too small with no possibilities for increased
capacity. Therefore the town council applied for extra power from The
National Electric Works (RARIK), and in 1956 started receiving it from
the Skeidsfoss Power Plant further north.
1957, the Gardsa Power Station and the town grid were signed over to
RARIK to serve as an auxiliary for the town. The station has been
problematic, especially during winter due to shortage of water.
Sometimes the generators stand still for months on end. Ice has
not been a great problem, mainly because hot water from two boreholes
further upriver has spilled into it.
1980, the town was connected to the national grid and all shortcomings
have been solved.