Plans for utilizing the Nesjavellir [ˈnɛːsjaˌvɛtlɪr̥] area for geothermal power and water heating began in 1947, when boreholes were drilled to evaluate the area's potential for power generation. Research continued from 1965 to 1986. In 1987, construction of the plant began, and the cornerstone was laid in May 1990. The station produces approximately 120 MW of electrical power; it also delivers around 1,100 litres (290 US gal) of hot water 82–85 °C (180–185 °F) per second - with a heating capacity of 300 MWt, serving around half of the space heating and hot water needs of the Capital Region, the rest provided by lower temperature fields and the Hellisheiði Geothermal CHP plant.
Panoramic view of the power station complex.Penstocks at the power station complex.