Denmark. Greenland Self Rule Government

The EUR 47 million loan has been provided for the construction of a hydropower plant with an installed capacity of 22.5 MW outside the town of Ilulissat on the west coast of Greenland.

The new power plant will harness the discharge from two natural glacial lakes with storage obtained by the drawdown of the water levels. Water will be conveyed through a 5.5-kilometre tunnel, down to three 7.5 MW turbines in an underground power station. The project also includes the construction of a 60 kV overhead transmission line, running from the power plant to the town of Ilulissat, as well as other infrastructure facilities, such as roads and a small harbour. The first turbine is planned to be commissioned in November 2012 and full operation is planned from September 2013.

The loan provided to the Greenland self-rule government will on-lend to Nukissiorfiit, the Greenland Energy Authority.

This is a priority project for the Greenlandic authorities. Greenland is dependent on local electricity production as the distances and glaciers prohibit connecting transmission lines. The power plant will secure the town of Ilulissat with a stable supply of electricity at a competitive price as hydropower is one of the most cost efficient ways of producing electricity.

The hydropower plant will utilise glacial melt water from two lakes. The additional renewable power due to the projects is approximately 65 GWh per year. The additional electricity will crowd out electricity and heat based on diesel fuel. An indirect reduction of greenhouse gas emissions can be recognised due to the project.