en.Wedoany.com Reported - Ístak hf., the Icelandic subsidiary of the Aarsleff Group, has signed a contract worth approximately DKK 375 million ($55 million) to expand the Sigalda Hydropower Plant in central Iceland.

The project plans to add a 65 MW generating unit, increasing the plant's total installed capacity from 150 MW to 215 MW. The additional power generation is expected to meet the annual electricity needs of over 50,000 households.

Construction is scheduled to begin in late summer 2026 and is expected to be completed by 2029. The scope of work includes building a new concrete structure to house the turbine and generator, expanding the plant's water intake system, and upgrading existing infrastructure.

The civil works will involve excavation and foundation work around the existing plant, along with the installation of approximately 100 meters of steel penstock to increase water supply to the facility. Other tasks include expanding drainage channels, installing slope and wave protection measures, upgrading fire and ventilation systems, constructing a new water tank, and extending the existing crane rail.

The project site is located approximately 160 km east of Reykjavík, about 18 km from another Landsvirkjun project that Ístak is currently completing. Construction is expected to involve nearly 32,000 cubic meters of rock excavation, installation of 660 meters of temporary steel sheet piles, and pouring over 10,000 cubic meters of concrete. Ístak stated that the project will leverage the Aarsleff Group's expertise in large-scale energy and infrastructure projects. Landsvirkjun, Iceland's state-owned power company, is the project owner.