All agreed loans

Denmark. Greenland Self Rule Government

Date of agreement: 15 Dec 2010
Country: Denmark
Customer: Greenland Self Rule Government
Amount in DKK: DKK 250 million
Amount in EUR: EUR 33.5 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and water

This loan contributes to climate change mitigation: 100%

Project

The loan has been provided for the construction of a hydroelectric power plant by Lake Tasersuaq, close to the town of Sisimuit, on the western coast of Greenland. The power station, which was officially opened in April 2010, is expected to generate 52 GWh in 2010. The plant is built underground at the end of a 5 km long intake tunnel. The power plant will replace two diesel generators in Sisimiut.

Greenland is dependent on local electricity production as the distances and glaciers prohibit connecting transmission lines. The hydropower project will secure a stable supply of electricity in the region at a competitive price.

The Greenland Self Rule Government will on-lend the money to Nukissiorfiit, the local energy company.

Sustainability summary

The environmental impacts identified will not have a significant effect on a regional or national level. There will be local effects of some significance. A stationary population of salmon trout in Lake Tasersuaq is expected to decrease due to the regulation of the lake's water level. All together, the impact on the fish in the affected area is expected to be significant. A small, insignificant effect on the wild reindeer population is expected to occur. As a result of depleted flow in the Kugssuaq River some wetland areas suitable for birds will diminish. The birds affected will move to similar habitats in the area. No land areas will be submerged due to the power plant. Only minor land areas close to the power station and the access road to the intake will be permanently altered.

The hydropower scheme will replace two existing diesel electric power sources in the town of Sisimiut. The diesel electric power supply is a source of noise, particulate matter, NOx, SOx and CO₂. Handling of large quantities of diesel in a near shore environment is also an environmental and safety risk. The diesel electric power station in Sisimiut used to consume around 7,150 m³ of fuel oil each year. The new hydropower station will result in a reduction of CO₂ emissions of roughly 19,000 tonnes per year. In addition to the global effect from CO₂ reductions, a local positive effect on ambient air quality in the town of Sisimiut will be achieved.

Press release

NIB finansierer nyt vandkraftværk i Grønland