The station is located on the Tungnaa 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 Budarhals Power Station is to build two dams to the east of Budarhals, a short distance above its junction with the Tungnaa River and the Kaldakvisl River.
Energy from Budarhals 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 Budarhals to the Hrauneyjar line and onto the National grid.
This power station is operated by two Kaplan turbines 2 x Kaplan turbines.
Burfell, Sultartangi, Hrauneyjafoss, Vatnsfell, Sigalda and Budarhals are with combined energy of 935 MW. Water for all the power stations is provided by three main reservoirs, Thorisvatn, Hagongulon and Kvislarveita, along with smaller reservoirs connected with each station.