The Government of Greenland approves exploitation license for the country’s largest hydropower project.
Naalakkersuisut has granted an exploitation license for the expansion of the hydropower plant in Utoqqarmiut Kangerluarsunnguat (Buksefjorden) – the largest hydropower project ever undertaken in Greenland. The expansion aims to meet Nuuk’s growing electricity demand and to future-proof the city’s green development with stable and renewable energy.
The license grants NunaGreen A/S and Nukissiorfiit the right to exploit the hydropower resources in Buksefjorden for the next 40 years.
The project includes the construction of a new 16 km tunnel connecting the existing reservoir to a higher-altitude lake, the establishment of a new 76 MW hydropower plant, and a 35 km transmission line linking the two facilities. Once fully operational, the project will be able to meet Nuuk’s increasing energy needs with green electricity for decades to come.
A Key Step for Greenland’s Green Transition
“The exploitation license is crucial for the project's realization and marks a significant milestone. At a time when the green transition is central to both Naalakkersuisut’s strategy and the global agenda – and with oil prices marked by growing uncertainty – it is particularly meaningful to advance such a strategic infrastructure project,” says Aviaaja Karlshøj Knudsen, CEO of NunaGreen.
“The expansion of the hydropower plant in Utoqqarmiut Kangerluarsunnguat is the country’s largest infrastructure project and will play an important role in Greenlandic society and the green transition. The exploitation license is a vital step toward realizing the project, and I am pleased that Naalakkersuisut has approved it,” says Johan Danielsen, Director of Energy at Nukissiorfiit.
NunaGreen is the project developer, while Nukissiorfiit will take over operations once the plant is completed. The exploitation license has therefore been jointly issued to both companies.
Preparations Are Already Underway
Initial construction work has already begun with the establishment of an access road to the project area. This is creating activity in Greenland’s construction sector and paving the way for the next phases of the project.
At the same time, two international consortia are preparing bids for the design and build contract. The final contract is expected to be signed by the end of 2025. Construction is anticipated to begin in 2026, with commissioning of the expanded plant in 2032.
