Site of Dam Construction. Glacier to the southwest will be source of water. Underground tunnels feed penstock and powerhouse 25 km to the east. Current Landsat Image shows no sign of activity. Photos at link below.
Under Construction, Power - Hydro
This plant was completed in 2009, so obviously the sat image predates that.
The hydro power supports the The Fjardaál aluminium smelter, which was completed June 2007 and reached full operation in April 2008. Construction began in 2004 and the facility contains a smelter, cast house, rod production and deep-water port. The smelter employs 450 people and produces 940 tons of aluminium a day, with capacity of 346,000 metric tons of aluminium per year. Fjardaál means "Aluminium of the Fjords" in Icelandic.