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Ajaure power plant is situated in the upper part of the Umeälv river, about four kilometres downstream of Lake Ajaure and 30 kilometres south of the ski resort of Tärnaby.

The power plant was the first in Sweden to use a diagonal turbine. Construction started in the summer of 1962 and the power plant was commissioned in 1967. 

The dam at Ajaure power plant is one of Vattenfall's largest, and Vattenfall has implemented a number of measures to further improve the safety of the dam and to prepare it for what is known as a 10,000 year flood, i.e. an extreme flow of water which is likely to occur only once every 10,000 years.

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