The construction of the power plant began during the Continuation War (also known as the Second Soviet-Finnish War) in 1941. Soviet prisoners of war were involved in the construction work. The Koivukoski power plant was finished in 1943.
Also known as Koivukoski I-II, this power plant is one of the three hydroelectric power plants in the Kajaaninjoki area. The other two power plants are Koivukoski III and Ämmäkoski power plant.