The power plant was built as there was potential for utilising the hydropower resources from Grøslandselva river. Utilising this made it possible to strengthen the economic basis from the properties (from the license application).
Grøslandselva river is located on the western side of Hallingdalen. It is one of the larger tributaries in the area.
The area around the power plant is mostly made up of moors and forested areas, which consist mainly of spruce and pine.
Annual inflow is 43.27 mill m3, and the flow rate is 3m3/s