Haukrei is located in Fyresdal municipality. The power plant is located in the catchment area of Finnøla Power Plant and acts as a tap between the Torsdal reservoir and Haukreivatn lake.
Development of Haukrei was considered in connection with the Finndøla development in the early 1970s, but the project became too expensive. The issue came up again in 1982 in connection with work on the ‘Overall plan’ and a more cost effective industrial solution was reached. Due to this and the market factors in the industry at the time, the project could be brought to fruition. Parts of the blasted rock from the tunnel were used as an additional supporting embankment for the Torsdal dam. The dam had shown signs of instability for a long time, and the Norwegian Water Resources and Energy Directorate had issued an order to have it reinforced. The Torsdal reservoir’s catchment area measures 151 square kilometres and the average annual outlet is 206 million cubic metres.
Haukrei Power Plant is wholly owned by Skagerak Kraft.