๐ Tender Overview
Reference: 20220715
Release date: 29 January 2025
Promoter โ Financial Intermediary
NUNAGREEN CONSTRUCTION A/S
Location
Greenland
Description
The Framework Loan supports the greenfield hydropower construction programme deriving from Greenland Energy Sector Plan. The project encompasses the construction of 76MW Buksefjord-3 hydropower plant (Buks-3 HPP) between Ista lake and Kang lake, approximately 30km east of existing 45MW Buksefjord-1 HPP, and associated infrastructure.
Objectives
The project implementation period is 2025-2031. Once completed, the project will increase the available green generation by around 515 GWh/a. It will provide with partial redundancy of the power supply to Nuuk and full redundancy, should Nukissiorfiit, the Greenlandic utility decide for a second 60km backup transmission line from Buksefjord to Nuuk. Once new hydropower capacity will be made available, Nukissiorfiit intends to use existing baseload diesel generators as backup and decommission outdated backup diesel generators dating from 1970's.
Comments
Greenland currently implements its "Sector Plan for Energy and Water Supply from 2018" with 35 goals of which decarbonising the electricity and district heating sector to achieve an 85% share of green production by 2030. The sector plan translated into the Greenland Parliament Act no. 22 of 1. December 2021 and the decision to implement the project. Besides the Government of Greenland is drafting a new strategic vision for energy and climate, to be ready in 2024. Greenland wants to reinforce its green strategy and sees opportunity to develop hydrogen production from oversupply of hydropower plants. Hydrogen could be used in Greenland's fish industry (boat fuel) and to replace oil fuel for power and heat production in small remote settlements where renewables are not viable to achieve 100% green energy production.
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
not disclosed
Total cost (Approximate amount)
not disclosed
Environmental aspects
The hydropower plant and the related facilities such as transmission items, roads and water tunnels included in the project scope, are currently subject to an Environmental Impact Assessment (EIA) process. The environmental permit is expected to be delivered to the Buksefjord HPP after end 2024 when the EIA has been completed. The EIA Report for the Buksefjord HPP (including a section on heating system conversion impacts) was submitted to the public consultation phase in mid-2023, after being reviewed by an external consultant hired by the Authorities. However, following a major design change of the project layout, the EIA process will be complemented and amended as required by the Greenlandic legislation. Moreover, should the Promoter decide to request financing for the second 60km backup transmission line from Buksefjord to Nuuk, the component will follow a screening process depending
