It is the first new power station to be constructed by Vattenfall since 1992.
The new plant, which will be located at Abelvattnet’s dam, will cost almost 100 million kronor. It will have an annual output of 14.2 gigawatt-hours – enough to provide electricity for around 2,800 homes.
The effect on the local environment is not going to be significant, the court found, since the dam is already in place. It was built at the end of the 1960s to regulate water flow to another power station 10km downstream.
Construction is expected to start in August and the plant should be ready for production in autumn 2009.