This power station is operated by two Kaplan turbines
The station is located on the Tungnaá River and takes advantage of the drop between the tail water of the Hrauneyjafoss Power Station and the Sultartangi Reservoir. The head will is 40 metres, with a harnessed discharge of 280 m3/s and an installed capacity of 95 MW. The energy generating capacity of the Station is estimated at 585 GW/h annually.
The main proposal for the Búðarháls Power Station is to build two dams to the east of Búðarháls, a short distance above its junction with the Tungnaá River and the Kaldakvísl River.
Energy from Búðarháls Power Station is sent from the generator step up transformers, located in front of the station and then underground to the Landsnet substation, located to the south of the powerhouse. It is transported from the substation, via high voltage line, eastward across Búðarháls to the Hrauneyjar line and onto the National grid.