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Alvøen is one of the oldest industrial places in Norway. As early as the 1620s a gunpowder mill was built here. The place itself was well situated for industrial activity, lying only 100 m from the waterfall, which provided power for the mill, and a good harbour wherefrom the products were shipped. The success of the gun-powder mill varied in the 1600s and 1700s, but what made Alvøen best known was its paper production.
As early as 1906 the Matre and Haugsdal waterway was bought up by the businessman Blauuw from Bergen; the first “waterfall speculator” in the Matre area. He immediately resold it to Fr. Hiorth, who transferred all the rights to the company Matrefaldene in 1908. Behind A/S Matrefaldene were German interests, Badische Anilin und Sodafabrik, which wanted to start production of saltpetre fertilizer with nitrogen and electricity.
In 1923 Bergenshalvøens Kommunale Kraftselskap (BKK) expropriated large areas for power plants and development of hydropower started soon afterwards. Dale power station with the two first aggregates, each of 14 MW was put into operation on 17 November 1927. In the supply reservoir in Storefossen 5152 cubic metres of concrete were cast, and a modern and well-equipped power station was built.
Today Tyssedal appears like a classical industrial community, a picture of modern Norway from the turn of the former century until today. A/S Tyssefaldene was established in 1906, and on 1 May 1908 Tyssedal power station was put into operation. The work on the first stage of the facility was completed in a short time, with a work force of 500 men. They built water tunnels, regulation reservoirs, power station, penstocks, harbour, cableways, office buildings, houses and 6 km of power lines in the wild mountains above Odda to provide the new melting plant with power.