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SECTOR PLAN FOR AND WATER SUPPLY

Republished august 2018 Contents PART I: OVERALL STRATEGY OBJECTIVES ...... 7 1. Foreword...... 8 2. Objectives ...... 10 3. Overall political framework for energy and water supply systems ...... 14 PART II: STRATEGY OBJECTIVES CONCERNING REDUCTIONS IN AND WATER PRICES 1617 4. Prices of electricity, water and ...... 1718 4.1 The existing price system ...... 1718 4.1.2 Rates for electricity, water and heating in 2017 ...... 1819 4.2 Developments in energy prices ...... 1920 4.3 Developments in water prices ...... 2021 4.4 The need for a more solidarity-based price system ...... 2122 4.4.1 The unequal distribution of income ...... 2122 4.4.2 The uneven distribution of business activity...... 2324 4.5 New pricing model for electricity and water ...... 2524 4.5.1 's recommendation for new prices ...... 2425 4.5.2 Savings for businesses, citizens and the public sector ...... 2526 4.5.3 Savings for families in towns and villages ...... 2526 4.5.4 Savings for the fishing industry ...... 2627 4.5.5 Comparison with electricity and water prices in other countries ...... 2627 4.5.5.1 Comparison with international prices for private electricity consumers ...... 2627 4.5.5.2 Comparison with international electricity prices for industry ...... 2829 4.5.5.3 Comparison with international prices of water ...... 3031 4.5.6 Neutral financing of the price reform with regard to operating costs, capital costs and lending ...... 3334 4.5.7 Summary concerning recommended pricing model 1 ...... 3536 4.5.8 Alternative pricing models ...... 3637 SECTION III: STRATEGY OBJECTIVES CONCERNING AND MODERNISATION OF THE ENERGY AND THE WATER SECTORS ...... 3839 5. Modernisation of the energy sector ...... 3940 5.1. today and up to 2030 ...... 3940 5.2. Energy consumption and renewable energy share ...... 3940 2 Contents 5.3. Current supply capacity at individual localities ...... 4243 PART I: OVERALL STRATEGY OBJECTIVES ...... 7 5.4 Energy consumption by businesses ...... 4344 1. Foreword...... 8 5.5. Trends in energy consumption up to 2030 ...... 4445 2. Objectives ...... 10 5.6. New technological possibilities in the of the future ...... 4647 3. Overall political framework for energy and water supply systems ...... 14 5.7. Possibilities to connect energy networks ...... 4647 PART II: STRATEGY OBJECTIVES CONCERNING REDUCTIONS IN ELECTRICITY AND WATER PRICES 16 5.8. Digital of control systems (smart-grid) ...... 4748 4. Prices of electricity, water and heat ...... 17 5.9. Wind ...... 4849 4.1 The existing price system ...... 17 5.10. Heat pumps ...... 4849 4.1.2 Rates for electricity, water and heating in 2017 ...... 18 5.11. Hydrogen-powered gas turbines ...... 4950 4.2 Developments in energy prices ...... 19 5.12. Steam turbines ...... 4950 4.3 Developments in water prices ...... 20 5.13. ...... 4950 4.4 The need for a more solidarity-based price system ...... 21 5.14. Summary ...... 5051 4.4.1 The unequal distribution of income ...... 21 6. Modernising the energy sector - ...... 5253 4.4.2 The uneven distribution of business activity...... 23 6.1. Five hydropower plants and potential to establish more ...... 5253 4.5 New pricing model for electricity and water ...... 24 6.2 The five existing hydropower plants constitute a significant part of the energy supply 5354 4.5.1 Naalakkersuisut's recommendation for new prices ...... 24 6.3 Establishing hydropower plants requires significant investment ...... 5455 4.5.2 Savings for businesses, citizens and the public sector ...... 25 6.4 Climate change affects hydropower potentials ...... 5455 4.5.3 Savings for families in towns and villages ...... 25 6.5 Hydropower potentials can attract new industries and investments ...... 5657 4.5.4 Savings for the fishing industry ...... 26 6.6 Focused efforts to map and market commercial potentials ...... 5758 4.5.5 Comparison with electricity and water prices in other countries ...... 26 6.7 Expanding existing hydropower plants ...... 5758 4.5.5.1 Comparison with international prices for private electricity consumers ...... 26 6.8. Hydropower supply to more settlements ...... 5960 4.5.5.2 Comparison with international electricity prices for industry ...... 28 7. Modernising the energy sector - other renewable energy sources ...... 6162 4.5.5.3 Comparison with international prices of water ...... 30 7.1. Production from other renewable energy sources is still modest ...... 6162 4.5.6 Neutral financing of the price reform with regard to operating costs, capital costs and 7.2. and solar energy integration into the public electricity supply ...... 6263 lending ...... 33 7.3. It must be possible to store and combine renewable energy ...... 6364 4.5.7 Summary concerning recommended pricing model 1 ...... 35 7.4. Experience exchange with other countries...... 6465 4.5.8 Alternative pricing models ...... 36 8. Modernising the heat supply system ...... 6566 SECTION III: STRATEGY OBJECTIVES CONCERNING RENEWABLE ENERGY AND MODERNISATION OF 8.1 Heat supply makes it possible to exploit different energy sources ...... 6566 THE ENERGY AND THE WATER SECTORS ...... 38 8.2. Efficient utilisation of waste as an energy source ...... 6768 5. Modernisation of the energy sector ...... 39 8.3. Working group to propose initiatives in the waste area ...... 6768 5.1. Energy consumption today and up to 2030 ...... 39 8.4. District heating networks for optimised exploitation of waste heat ...... 6869 5.2. Energy consumption and renewable energy share ...... 39 2 3 8.5. Expansion of the collective heating network and connection of more consumers ...... 6869 8.6. A more efficient and consolidated heat supply system ...... 6970 8.7. Connection of more households to collective heat supply ...... 7071 8.8. Individual settlement of heat ...... 7172 8.9. Promotion of new technologies for heat supply ...... 7172 9. Modernisation of the water supply system ...... 7374 9.1. The water supply system today and up to 2030 ...... 7374 9.2. Purpose ...... 7374 9.3. Security of supply ...... 7374 9.4. Resource-efficient supply ...... 7374 9.5. Water supply in towns ...... 7475 9.6. Water supply in villages ...... 7576 9.7. Water protection zones ...... 7677 9.8 Water production and distribution today ...... 7677 9.9. Water consumption ...... 7879 9.10. Current supply capacity at individual localities ...... 7879 9.11. Energy consumption for water production ...... 7980 9.12. Summary of the water supply situation ...... 8081 9.13. Water supply towards 2030 ...... 8081 9.14. Business development and water supply ...... 8182 9.15. Documented drinking water safety ...... 8283 9.16. Investments in water supply installations ...... 8384 9.17. Action plan for water quality and water treatment ...... 8384 9.18. Summary ...... 8485 10. Modernising the energy sector - electric cars ...... 8586 10.1. Local renewable energy to replace imported oil ...... 8586 10.2. Easy to charge electric cars ...... 8788 10.3. Driving an electric car should be financially advantageous ...... 8889 11. Modernising the energy supply - energy optimisation ...... 8990 11.1. Energy optimisation in production and distribution ...... 8990 11.2. Savings for consumers ...... 9091

4 8.5. Expansion of the collective heating network and connection of more consumers ...... 68 11.3. Savings in the business sector ...... 9293 8.6. A more efficient and consolidated heat supply system ...... 69 11.4. Energy optimisation in the public sector ...... 9293 8.7. Connection of more households to collective heat supply ...... 70 11.5. Action plan for energy optimisation ...... 9394 8.8. Individual settlement of heat ...... 71 12. Investment plan ...... 9495 8.9. Promotion of new technologies for heat supply ...... 71 12.1. Fixed asset investments ...... 9495 9. Modernisation of the water supply system ...... 73 12.2. Loan requirements ...... 9954 9.1. The water supply system today and up to 2030 ...... 73 12.3. Interest and repayment of existing loans ...... 9495 9.2. Purpose ...... 73 12.4. Investments in new hydropower plants ...... 9697 9.3. Security of supply ...... 73 12.5. Expected and future action areas ...... 9798 9.4. Resource-efficient supply ...... 73 12.6. New action areas ...... 9798 9.5. Water supply in towns ...... 74 12.7. Summary ...... 9899 9.6. Water supply in villages ...... 75 Annexes ...... 102 99 9.7. Water protection zones ...... 76 Annex 1. Basis for calculation of projected electricity and heating consumption ...... 102100 9.8 Water production and distribution today ...... 76 ANNEX 2. Alternative pricing models ...... 103 9.9. Water consumption ...... 78 9.10. Current supply capacity at individual localities ...... 78 9.11. Energy consumption for water production ...... 79 9.12. Summary of the water supply situation ...... 80 9.13. Water supply towards 2030 ...... 80 9.14. Business development and water supply ...... 81 9.15. Documented drinking water safety ...... 82 9.16. Investments in water supply installations ...... 83 9.17. Action plan for water quality and water treatment ...... 83 9.18. Summary ...... 84 10. Modernising the energy sector - electric cars ...... 85 10.1. Local renewable energy to replace imported oil ...... 85 10.2. Easy to charge electric cars ...... 87 10.3. Driving an electric car should be financially advantageous ...... 88 11. Modernising the energy supply - energy optimisation ...... 89 11.1. Energy optimisation in production and distribution ...... 89 11.2. Savings for consumers ...... 90

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6 PART I:

OVERALL STRATEGY OBJECTIVES

6 7 1. Foreword Public energy and water supplies are a fundamental part of 's infrastructure and they are essential for our modern lifestyle, as well as for the further development of Greenland businesses and industries. Naalakkersuisut has a clear goal to ensure a reliable, accessible and financially advantageous public supply of energy and water to all citizens and businesses in Greenland.

This sector plan outlines the direction for Naalakkersuisut's and priorities for public energy and water supplies up to 2030. And we have set the bar high. Our energy reform has three main topics:

1. Lower prices of electricity and water The introduction of uniform prices of electricity and water. Electricity and water prices will be reduced from 1 January 2018. Families on the coast will have large savings, which can be used to ensure more social welfare services. And the business community will also have access to cheaper electricity and water, which will support the establishment of new workplaces and jobs, not least in small towns and villages. 2. Green energy wherever possible In 2030, the goal is for public energy services to be based on renewable energy sources as far as possible. 3. Modernisation of the Finally, there will be comprehensive modernisation of the energy system. Energy production based on fossil will be replaced by new , where this has not already been done. The new energy sources will be hydro, wind, solar and hydrogen, and there will be technological optimisation of the overall energy system.

Naalakkersuisut will introduce prices based on solidarity and fairness. A significant cut in prices for consumers will be introduced from 1 January 2018, and new energy-price structures and utilities models will be introduced to support business development.

In 2030, the goal is for public energy services to be based on renewable energy sources as far as possible. Greenland has huge hydropower potentials and hydropower already makes up the largest energy source in public energy services. Amongst other things, the energy sector will be modernised through hydropower development so that an even greater part of Greenland will be supplied with clean and cheap energy. Naalakkersuisut has already this year instigated a comprehensive survey of the very large hydropower potentials on the west coast of Greenland, and these will be promoted to attract energy-intensive industry.

8 1. Foreword In upcoming years, there will also be a comprehensive modernisation of the energy system. In this Public energy and water supplies are a fundamental part of Greenland's infrastructure and they connection, there will be initiatives for targeted optimisation and technological updating of are essential for our modern lifestyle, as well as for the further development of Greenland existing installations as well as initiatives for targeted investment in new energy sources. businesses and industries. Naalakkersuisut has a clear goal to ensure a reliable, accessible and financially advantageous public supply of energy and water to all citizens and businesses in The government-owned energy company Nukissiorfiit plans to test several different renewable Greenland. energy sources soon in 2018. There will be particular focus on wind measurements in a number of localities where the energy supply needs to be renewed in the short and long terms. This sector plan outlines the direction for Naalakkersuisut's work and priorities for public energy and water supplies up to 2030. And we have set the bar high. Our energy reform has three main Furthermore, there will be specific assessments of the possibilities to increase the use of other topics: energy sources such as solar, hydrogen, , etc.

1. Lower prices of electricity and water A pilot project has already been launched, and this will provide better, cheaper and cleaner energy The introduction of uniform prices of electricity and water. Electricity and water prices will be to villages, and potentially also to small towns. Nukissiorfiit is responsible for the construction of a reduced from 1 January 2018. Families on the coast will have large savings, which can be so-called hybrid plant in . The project is the first of its kind in Greenland. The plant combines used to ensure more social welfare services. And the business community will also have solar, wind and a battery bank with a traditional diesel generator plant. The objective is to replace access to cheaper electricity and water, which will support the establishment of new as much as possible of existing diesel consumption, as well as to test the combination of the four workplaces and jobs, not least in small towns and villages. energy types/technologies in a Greenland setting. 2. Green energy wherever possible In 2030, the goal is for public energy services to be based on renewable energy sources as far So as to achieve optimal utilisation of all existing and new facilities, digital solutions will be as possible. developed for use both internally and externally. 3. Modernisation of the energy system Finally, there will be comprehensive modernisation of the energy system. Energy production Naalakkersuisut considers it vital to closely monitor technological developments. Renewable based on fossil fuels will be replaced by new energy technology, where this has not already energy solutions in the Arctic are developing fast and Greenland must be among the frontrunners. been done. The new energy sources will be hydro, wind, solar and hydrogen, and there will be This is why Naalakkersuisut wants to make it attractive to choose an electric car over conventional, technological optimisation of the overall energy system. -driven cars. In this way, Greenland will run on clean, green and Greenland energy. Opportunities to electrify all land-based transport are good in the six hydropower towns in Naalakkersuisut will introduce prices based on solidarity and fairness. A significant cut in prices for Greenland. In order to achieve this, Naalakkersuisut will maintain the current tax-exemption for consumers will be introduced from 1 January 2018, and new energy-price structures and utilities electric cars and will work to ensure that everyone has good possibilities to charge their electric models will be introduced to support business development. car, in public areas as well as near residential housing.

In 2030, the goal is for public energy services to be based on renewable energy sources as far as possible. Greenland has huge hydropower potentials and hydropower already makes up the We hope you find this publication interesting! largest energy source in public energy services. Amongst other things, the energy sector will be modernised through hydropower development so that an even greater part of Greenland will be supplied with clean and cheap energy. Naalakkersuisut has already this year instigated a comprehensive survey of the very large hydropower potentials on the west coast of Greenland, Goverment of Greenland and these will be promoted to attract energy-intensive industry.

8 9 2. Objectives This sector plan describes the supply of energy and water by public utilities in Greenland today, in the near future, and up to 2030.

Naalakkersuisut has high ambitions in the energy area. This chapter outlines the objectives for all sub elements of the strategy.

A. ELECTRICITY AND WATER PRICES A.1 Objectives concerning reductions in electricity and water prices

1. Objective: Electricity and water prices will be reduced from 1 January 2018.

2. Objective: Families on the coast will have large savings, which can be used to ensure more social welfare services.

3. Objective: The business community will also have access to cheaper electricity and water, which will support the establishment of new workplaces and jobs, not least in small towns and villages.

4. Objective: A uniform price of electricity of DKK 1.60 per kWh will be introduced.

5. Objective: A uniform price of water of DKK 19 per m3 will be introduced.

6. Objective: The fishing industry rate will be set to 41.5% of the unit cost of electricity and water in the individual town or village with the following modification:

6.1. The fishing industry will pay no more than the same tariff for electricity and water as other consumers.

6.2. The fishing industry will pay a minimum of 41.5% of the minimum price paid by other consumers.

6.3. Therefore, the fishing industry will pay a minimum price for electricity of DKK 0.66 per kWh and a maximum price of DKK 1.60 per kWh.

6.4. For water, the fishing industry will pay a minimum price of DKK 7.89 per m3 and a maximum price of DKK 19 per m3.

10 2. Objectives B. RENEWABLE ENERGY AND MODERNISATION OF THE ENERGY AND This sector plan describes the supply of energy and water by public utilities in Greenland today, in WATER SUPPLY SYSTEMS the near future, and up to 2030. B.1 Objectives concerning renewable energy sources and

Naalakkersuisut has high ambitions in the energy area. This chapter outlines the objectives for all modernisation of the energy system sub elements of the strategy. 7. Objective: In 2030, the goal is for public energy services to be based on renewable energy A. ELECTRICITY AND WATER PRICES sources as far as possible. A.1 Objectives concerning reductions in electricity and water prices 8. Objective: There will be comprehensive modernisation of the energy system.

1. Objective: Electricity and water prices will be reduced from 1 January 2018. 9. Objective: Energy production based on fossil fuels will be replaced by new energy technology, where this has not already been done. 2. Objective: Families on the coast will have large savings, which can be used to ensure more social welfare services. 10. Objective: Energy supply will be based on hydro, wind and , as well as on waste incineration, hydrogen etc. 3. Objective: The business community will also have access to cheaper electricity and water, which will support the establishment of new workplaces and jobs, not least in 11. Objective: There will be investment in the six existing hydropower towns to ensure that small towns and villages. hydropower together with waste incineration and other renewable energy

sources can meet the full demand for electricity and heating in these towns. 4. Objective: A uniform price of electricity of DKK 1.60 per kWh will be introduced.

12. Objective: A decision basis will be prepared concerning the possible establishment of 5. Objective: A uniform price of water of DKK 19 per m3 will be introduced. hydropower for and .

6. Objective: The fishing industry rate will be set to 41.5% of the unit cost of electricity and 13. Objective: The possibilities for establishing hydropower for , and water in the individual town or village with the following modification: will be examined in more detail.

6.1. The fishing industry will pay no more than the same tariff for electricity and 14. Objective: Existing hydropower for will be expanded through a number of efficiency water as other consumers. improvement initiatives to be completed in the period up to 2020.

6.2. The fishing industry will pay a minimum of 41.5% of the minimum price paid by other consumers. 15. Objective: The water catchment area for Hydropower Plant will be extended in the period 2018-2020. 6.3. Therefore, the fishing industry will pay a minimum price for electricity of DKK 0.66 per kWh and a maximum price of DKK 1.60 per kWh. 16. Objective: There will be more surveys to examine the possibilities of establishing smaller hydropower plants for smaller settlements. 6.4. For water, the fishing industry will pay a minimum price of DKK 7.89 per m3 and a maximum price of DKK 19 per m3. 17. Objective: Naalakkersuisut will map and promote Greenland's large hydropower potentials for businesses on the lookout for cheap, clean and plentiful energy.

10 11 18. Objective: For a number of years (initially five years), field studies will be carried out to map and then promote hydropower potentials with significant business potentials.

19. Objective: Different energy-storage methods and hybrid plants will be tested, so that these technologies can be used in the future energy supply, if they prove to be suitable for the purpose.

20. Objective: The pilot project on recharging of electric cars in will be continued in a more permanent form in Nuuk and other towns.

B.2 Objectives concerned specifically with modernisation of the heat supply system

21. Objective: Hydropower and new technologies will be included in the heat supply system in all parts of Greenland as the use of these technologies becomes technically, operationally and socio-economically viable in a Greenland setting.

22. Objective: The collective heat supply will be expanded with a view to reducing fossil fuels in private and public heat production.

23. Objective: Waste will be considered a resource, and residual heat from waste incineration plants will be utilised, e.g. for district heating purposes.

24. Objective: There will be regular initiatives to optimise the operation of installations with a view to enhancing the utilisation of residual heat.

25. Objective: New technologies will be included in the heat supply system as the use of these technologies becomes technically, operationally and socio-economically viable in a Greenland setting.

26. Objective: A decision basis will be prepared to transfer all heating plants to Nukissiorfiit.

27. Objective: From 2018, individual heat meters will be installed in all publicly owned rental properties technically prepared for this (around 3,000 flats).

12 18. Objective: For a number of years (initially five years), field studies will be carried out to map 28. Objective: In 2018, there will be an investigation into whether and how heat from heat and then promote hydropower potentials with significant business potentials. pumps can be fed into the public district heating grid.

19. Objective: Different energy-storage methods and hybrid plants will be tested, so that these technologies can be used in the future energy supply, if they prove to be suitable B.3 Objectives concerned with modernisation of the water supply for the purpose. system

20. Objective: The pilot project on recharging of electric cars in Nuuk will be continued in a more 29. Objective: The costs of rolling out pressurised water supply to all residential units in towns permanent form in Nuuk and other towns. will be examined before the end of 2018. The purpose is to discontinue water delivery services wherever possible by the end of 2025.

B.2 Objectives concerned specifically with modernisation of the heat 30. Objective: The financial burden of providing all towns with a pressurised water supply to supply system central water filling stations will be examined before the end of 2018.

21. Objective: Hydropower and new technologies will be included in the heat supply system in 31. Objective: Together with Nukissiorfiit, the municipalities and the fishing industry will all parts of Greenland as the use of these technologies becomes technically, prepare a national plan for surveying and procurement of electricity and water operationally and socio-economically viable in a Greenland setting. infrastructure to meet the demands of industry and businesses in all settlements. The surveying will be based on realistic assumptions regarding such things as cost 22. Objective: The collective heat supply will be expanded with a view to reducing fossil fuels in levels in connection with the production of electricity, water and heating; fishing private and public heat production. and hunting resources; labour resources; demographics; etc.

23. Objective: Waste will be considered a resource, and residual heat from waste incineration 32. Objective: There will be ongoing optimisation of the water supply system throughout plants will be utilised, e.g. for district heating purposes. Greenland to ensure adequate amounts of clean drinking water at the lowest possible costs to individual consumers and industry and businesses. 24. Objective: There will be regular initiatives to optimise the operation of installations with a view to enhancing the utilisation of residual heat. 33. Objective: Documented drinking water safety (DDS) will be implemented in all towns by the end of 2019. Implementation of DDS in all towns will help ensure continued 25. Objective: New technologies will be included in the heat supply system as the use of these improvement of the security of supply and of water quality. technologies becomes technically, operationally and socio-economically viable in a Greenland setting. 34. Objective: Documented drinking water safety (DDS) will be implemented in all villages by the end of 2025. Implementation of DDS in villages will take place in step with 26. Objective: A decision basis will be prepared to transfer all heating plants to Nukissiorfiit. investments in water supply facilities in upcoming years.

27. Objective: From 2018, individual heat meters will be installed in all publicly owned rental 35. Objective: There will be initiatives to reduce water loss by replacing end-of-life supply lines. properties technically prepared for this (around 3,000 flats).

12 13 3. Overall political framework for energy and water supply systems Access to energy is an important foundation for well-being and growth in society. Developments within energy and water are therefore a high priority and will be based on long-term planning.

Naalakkersuisut has three overall goals for development within energy and water up to 2030:

1. Lower prices of electricity and water The introduction of uniform prices of electricity and water. Electricity and water prices will be reduced from 1 January 2018. Families on the coast will have large savings, which can be used to ensure more social welfare services. And the business community will also have access to cheaper electricity and water, which will support the establishment of new workplaces and jobs, not least in small towns and villages. 2. Renewable energy wherever possible In 2030, the goal is for public energy services to be based on renewable energy sources as far as possible. 3. Modernisation of the energy system Finally, there will be comprehensive modernisation of the energy system. Energy production based on fossil fuels will be replaced by new energy technology, where this has not already been done. The new energy sources will be hydro, wind, solar and hydrogen, etc. and there will be technological optimisation of the overall energy system.

Citizens and businesses will have access to a stable and cheap supply of energy and water Greenland is a vast country, characterised by vast differences. However, energy is a basic condition for welfare in a modern society. This applies not least in Greenland with its Arctic climate. Naalakkersuisut wants citizens and businesses to have access to a stable energy and water supply and at a reasonable price. There has to be appropriate energy supply solutions in place in all settlements in Greenland, so that every town and village can continue to have a high degree of security of supply, while at the same time, prices support a solidarity-based society. Greenland's energy and water supply systems should provide support for a sustainable environment and climate The Coalition Agreement 2016-2018 says that "Greenland is to be fully self-sufficient in green energy".1There is a great potential for increased use of local renewable energy resources in Greenland. Exploiting these resources will benefit the country both economically and environmentally. Therefore, a long-term goal for Greenland's energy supply system is that it is to be based exclusively on local renewable energy sources. This would also reduce the risks associated with fluctuating oil prices and it would improve Greenland's trade balance. Even though Nukissiorfiit's energy production is already based primarily on renewable energy, achieving this goal requires investment and enhanced exploitation of existing capacity.

1 Naalakkersuisut (2016), Coalition Agreement 2016-2018

14 3. Overall political framework for energy and water supply systems Appropriate technological solutions have to be found that will ensure a continued high level of Access to energy is an important foundation for well-being and growth in society. Developments security of supply as well as a sound financial basis for supply services. within energy and water are therefore a high priority and will be based on long-term planning. Greenland's energy supply has to be based more on renewable energy. Achieving this requires Naalakkersuisut has three overall goals for development within energy and water up to 2030: more renewable energy capacity; replacing oil-fired installations in private homes with either district heating or electric heating; as well as converting onshore transport to electricity. 1. Lower prices of electricity and water The introduction of uniform prices of electricity and water. Electricity and water prices will be Water supply systems can be very energy-intensive. There is a need to focus on sustainable reduced from 1 January 2018. Families on the coast will have large savings, which can be solutions in this area; solutions that will benefit both the climate and the environment. used to ensure more social welfare services. And the business community will also have access to cheaper electricity and water, which will support the establishment of new Huge amounts of energy are needed to produce and distribute drinking water. Due to the climate workplaces and jobs, not least in small towns and villages. in Greenland, freeze-protected facilities are required during the winter months to keep drinking 2. Renewable energy wherever possible water and raw water at a temperature that prevents freezing. It is important that plants and In 2030, the goal is for public energy services to be based on renewable energy sources as far facilities are well maintained and well operated, so as not to waste unnecessary energy. Much of as possible. the energy used in the production and distribution of water is used to pump the water around the 3. Modernisation of the energy system system. Production of drinking water from seawater is particularly energy-intensive. Ongoing Finally, there will be comprehensive modernisation of the energy system. Energy production renovation and replacement of old pumps with new, more energy-efficient pumps; repairs and based on fossil fuels will be replaced by new energy technology, where this has not already upgrades to water mains and pipes; and ensuring optimal operation of freeze-protected systems been done. The new energy sources will be hydro, wind, solar and hydrogen, etc. and there are some of the solutions to provide for more efficient use of energy in drinking water supplies. will be technological optimisation of the overall energy system. Energy and water services should contribute to the economy Citizens and businesses will have access to a stable and cheap supply of energy and water Greenland is facing major economic challenges. An efficient and effective infrastructure is vital in Greenland is a vast country, characterised by vast differences. However, energy is a basic order to build a long-term stable economy. Energy and water supply services are a fundamental condition for welfare in a modern society. This applies not least in Greenland with its Arctic part of the infrastructure in any modern society. climate. Naalakkersuisut wants citizens and businesses to have access to a stable energy and water supply and at a reasonable price. There has to be appropriate energy supply solutions in place in Naalakkersuisut's goal is that Greenland's energy and water services contribute positively to the all settlements in Greenland, so that every town and village can continue to have a high degree of economy. There is a need for investment in the area in order to safeguard growth through security of supply, while at the same time, prices support a solidarity-based society. business development, lower energy prices, new renewable technologies, etc. Investments have Greenland's energy and water supply systems should provide support for a sustainable to be based on long-term planning so that they are future-proof and do not burden the Greenland environment and climate Treasury unnecessarily. The Coalition Agreement 2016-2018 says that "Greenland is to be fully self-sufficient in green energy".1There is a great potential for increased use of local renewable energy resources in Greenland. Exploiting these resources will benefit the country both economically and environmentally. Therefore, a long-term goal for Greenland's energy supply system is that it is to be based exclusively on local renewable energy sources. This would also reduce the risks associated with fluctuating oil prices and it would improve Greenland's trade balance. Even though Nukissiorfiit's energy production is already based primarily on renewable energy, achieving this goal requires investment and enhanced exploitation of existing capacity.

1 Naalakkersuisut (2016), Coalition Agreement 2016-2018

14 15 16 PART II:

STRATEGY OBJECTIVES CONCERNING REDUCTIONS IN ELECTRICITY AND WATER PRICES

16 16 17 4. Prices of electricity, water and heat Public energy and water supplies are a fundamental part of Greenland's infrastructure and they are essential for our modern lifestyle, and not least for the further development of Greenland businesses and industries. Naalakkersuisut therefore has a goal to ensure a financially advantageous supply of energy and water to all citizens and businesses in Greenland.

The following specific goals for setting electricity and water prices have been set out in Naalakkersuisut's Coalition Agreement:

 The coalition will work to introduce prices of electricity, water and heat that are based on solidarity and fairness. In this way, the Coalition aims to ensure a greater degree of financial equality for all families.  There must uniform prices for electricity, water and heating for all production facilities in Greenland so as to secure equal opportunities for businesses development throughout Greenland.

The short-term goal is to ensure a significant cut in prices for consumers and to introduce new energy-price structures and utilities models to support business development.

4.1 The existing price system Naalakkersuisut is authorised to determine tariffs for electricity, water and heating within the framework of Parliament Regulation no. 14 of 6 November 1997 on energy supply.

With effect from 2005, a reform was adopted which broke with the existing principle of uniform prices for electricity and water. Since then, electricity and water prices have corresponded to the costs of producing and supplying the electricity and water to the individual locality.

However, the 2005 reform was implemented with the introduction of minimum and maximum prices.

The consumer price varies from locality to locality between the fixed minimum price and the fixed maximum price. In practice, the price paid in villages is typically the maximum price, while the prices paid in the hydropower towns are cost-reflective prices or the minimum price.

The pricing model is therefore not self-financing at all localities. The deficit is financed partly through internal cross-subsidisation within Nukissiorfiit - geographically as well as between the individual products - and partly through annual operating subsidies for Nukissiorfiit from the state, although these subsidies have been phased out by about DKK 10 mill. annually and will cease at the end of 2018.

18 17 4. Prices of electricity, water and heat Public energy and water supplies are a fundamental part of Greenland's infrastructure and they Due to this model, Nukissiorfiit each year prepares distribution accounts for each settlement, so are essential for our modern lifestyle, and not least for the further development of Greenland that it can determine the tariffs for its two types of customer. businesses and industries. Naalakkersuisut therefore has a goal to ensure a financially advantageous supply of energy and water to all citizens and businesses in Greenland. The distribution accounts are regulated by Statutory Order no. 12 of 10 August 2006 on establishment of the principles for allocating costs for calculating unit costs for electricity, water

and collective heating. Moreover, the model involves Naalakkersuisut setting tariffs each year on The following specific goals for setting electricity and water prices have been set out in the basis of the most recently published distribution accounts and on the basis of the budgeted Naalakkersuisut's Coalition Agreement: increase in costs for the current year and subsequent financial years. The tariffs may be adjusted during the year if significant changes occur in sales or in costs.  The coalition will work to introduce prices of electricity, water and heat that are based on solidarity and fairness. In this way, the Coalition aims to ensure a greater degree of The model can be summarised as follows: financial equality for all families.  There must uniform prices for electricity, water and heating for all production facilities in  Ordinary consumers pay cost-reflective tariffs for electricity and water in the individual Greenland so as to secure equal opportunities for businesses development throughout town and village, subject to the following modifications: Greenland. o in towns and villages where the cost-reflective tariff is higher than the maximum tariff, consumers pay the maximum tariff for electricity and water; The short-term goal is to ensure a significant cut in prices for consumers and to introduce new o in towns and villages where the cost-reflective tariff is lower than the minimum energy-price structures and utilities models to support business development. tariff, consumers pay the minimum.  The fishing industry pays 41.5% of the local unit cost of electricity and water in the individual town and village, subject to the following modification: 4.1 The existing price system o in towns and villages, the fishing industry can only pay the same tariff for electricity Naalakkersuisut is authorised to determine tariffs for electricity, water and heating within the and water as other consumers and at least 41.5% of the minimum price paid by framework of Parliament Regulation no. 14 of 6 November 1997 on energy supply. other consumers.  Heating tariffs continue to be a national uniform price based on the oil price. With effect from 2005, a reform was adopted which broke with the existing principle of uniform prices for electricity and water. Since then, electricity and water prices have corresponded to the 4.1.2 Rates for electricity, water and heating in 2017 costs of producing and supplying the electricity and water to the individual locality. Investments in energy and water, together with the price of oil, have great significance for the prices of electricity, water and heating. The prices require approval from Naalakkersuisut, and they However, the 2005 reform was implemented with the introduction of minimum and maximum are determined at the turn of the year and in connection with significant changes in costs of prices. energy production, typically in connection with large changes in oil prices.

The consumer price varies from locality to locality between the fixed minimum price and the fixed The following prices apply for electricity, water and heating in 2017: maximum price. In practice, the price paid in villages is typically the maximum price, while the prices paid in the hydropower towns are cost-reflective prices or the minimum price.  Electricity: a minimum price of DKK 1.63/kWh and a maximum price of DKK 3.25/kWh  Water: a minimum price of DKK 19.12/m3 and a maximum price of DKK 33.40/m3 The pricing model is therefore not self-financing at all localities. The deficit is financed partly  Fishing industry rate: 41.5% of the local unit cost of electricity and water applicable in the through internal cross-subsidisation within Nukissiorfiit - geographically as well as between the relevant town or village, however no more than the maximum price and no less than 41.5% individual products - and partly through annual operating subsidies for Nukissiorfiit from the state, of the minimum price paid by other consumers although these subsidies have been phased out by about DKK 10 mill. annually and will cease at Heating rates: the end of 2018.  Fixed heating (electricity or water-based heating): DKK 0.77/kWh

18 17 18 19 modtager offentlig varmeforsyning stilles lige. Dette princip gælder uanset om varmen leveres fra dieselværker eller som el-varme leveret på baggrund af el produktion fra vandkraftværker. Prisen for afbrydelig varme er lavere end prisen for fast varme. Den lavere pris for afbrydelig varme, skal ses i lyset af at kunder som modtager afbrydelig varme skal have egen backup varmeforsyning.

4.2 Energiprisernes udvikling Elprisen har de seneste år været stabil eller faldende. Prisen varierer fra lokalitet til lokalitet mellem den fastsatte minimalpris og maksimalpris, hvor udgangspunktet som nævnt er den kostægte pris. Udviklingen i priserne på el og varme kan ses af Figur 1 og Figur 2.

Da de nuværende bestemmelser om fastsættelse af priser blev vedtaget i 2004 valgte man fra politisk side, at prisen på fjernvarme og elvarme skal være på niveau med udgifterne til varme produceret på private oliefyr. Derfor følger varmeprisen olieprisen, som det ses i nedenstående Figur 2, at prisen gennem en periode har været stigende, men de seneste år har været stabil eller faldende.

5,00

4,50

4,00

3,50

3,00

2,50

2,00

1,50

1,00

0,50 01-01-2005 01-02-2007 01-03-2009 01-04-2011 01-05-2013 01-06-2015 Figur 1 Gennemsnitlig udvikling i elpriser 2004-2017 (2016-priser) Kilde: Nukissiorfiit

 Interruptible heating (electricity or water-based heating): DKK 0.71/kWh 1.000 DKK per DKK per litre 7 1,000 MWh In principle, heating prices are fixed as national uniform prices. The price of heating is determined 900900 Greenland price of gas-oil - green (see axis to the right) 6 on the basis of the oil price and recovery rate in oil-fired installations. The price of heating 800800 700 Tariff for fixed heating - 700 5 therefore follows developments in oil prices. This means that households with their own oil-fired blue 600600 installations and households that receive heating as a public utility service are treated equally with 500500 Tariff for interruptible heating - 4 red 400400 regard to the heating price. 3 300300 200 200 2 This principle applies regardless of whether the heat is supplied from diesel plants or as electric 100100 modtager offentlig varmeforsyning stilles lige. Dette princip gælder uanset om varmen leveres fra - - 1 heating based on electricity production from hydropower plants. The price of interruptible heating 01-01-2005 01-10-2006 01-07-2008 01-04-2010 01-01-2012 01-10-2013 01-07-2015 dieselværker eller som el-varme leveret på baggrund af el produktion fra vandkraftværker. Prisen is lower than the price for fixed heating. The lower price of interruptible heating should be seen in Figur 2 Udvikling i varmepris og Polaroils gasoliepris 2004-2017 (2016-priser) for afbrydelig varme er lavere end prisen for fast varme. Den lavere pris for afbrydelig varme, skal Figure 2 Trends in the price of heat and Polaroil's gas-oil price 2004-2017 (2016 prices) of the fact that customers that receive interruptible heating must have their own backup heat Kilde:Source: Nukissiorfiit Nukissiorfiit ses i lyset af at kunder som modtager afbrydelig varme skal have egen backup varmeforsyning. supply. 20 4.2 EnergiprisernesDevelopments in udvikling energy prices 4.3 Developments in water prices ElprisenThe price har of electricityde seneste has år been været stable stabil or eller falling faldende. in recent Prisen years. varierer The price fra varies lokalitet from til locality lokalitet to The price of the water is determined on the basis of the local costs. The costs include the costs mellemlocality betweenden fastsatte the fixed minimalpris minimum og price maksimalpris, and the fixed hvor maximum udgangspunktet price, with som outset nævnt in the er costden- associated with the operation of the water supply system in the town/village, as well as costs of kostægtereflective pris.price. Udviklingen The trend in i priserne prices of på electricity el og varme and kanheating ses af can Figur be seen1 og Figurin figures 2. 1 and 2. regular reinvestments in waterworks and distribution systems, etc. On the basis of these costs, a cost-reflective price of drinking water is calculated. The price that the consumer has to pay for WhenDa de nuværendethe current bestemmelserprovisions on om determining fastsættelse prices af priser were blev adopt vedtageted in 2004,i 2004 itvalgte was mandecided fra drinking water is determined by the minimum-maximum range. Customers only pay the cost- politicallypolitisk side, that at the prisen price på of fjernvarmedistrict heating og elvarme and electric skal heatingvære på should niveau reflect med udgifternethe costs of til heating varme reflective price if the cost-reflective price is within the minimum-maximum range. If the cost- producedproduceret at på privately private oliefyr.owned Derforoil-fired følger installations. varmeprisen Therefore, olieprisen, the pricesom detof heatingses i nedenstående follows the reflective price lies outside the minimum-maximum range, either the minimum price or the priceFigur of2, atoil, prisen and, asgennem can be en seen periode in figure har 2været below, stigende, the price men increased de seneste for a år period har været of time stabil but eller has maximum price is paid for drinking water. beenfaldende. stable or falling in recent years. In the villages where citizens obtain drinking water for their own consumption from a public filling DKKDKKDKK per per kWh perkWh 5.00 5,00 kWh point, the individual municipality pays for the citizens' water consumption. In several villages, 4.50 4,50 water mains have been laid out to public buildings such as schools, service houses, etc. During the Maximum tariff for electricity - red 4.00 4,00 MaximumMaximum tariff tariff for electricity for electricity - red - summer months, summer mains and pipes are provided in several localities to supply drinking 3.50 3,50 red water to citizens. 3.00 3,00 2.50 2,50 Where drinking water is supplied to individual households, either via water mains or via delivery Minimum tariff for electricity - blue 2.00 2,00 by water trucks (bulk water delivery), the owner of the property pays for the drinking water 1.50 1,50 consumed. Customers who are supplied via bulk water delivery pay the fixed drinking water price MinimumMinimum tariff for tariff electricity for electricity - blue - 1.00 1,00 blue as well as 50% of the operating costs associated with bulk water delivery. Bulk water is delivered 0.50 0,50 to 13 towns and one village. 01-01-2005 01-02-2007 01-03-2009 01-04-2011 01-05-2013 01-06-2015 Figure 1 Average development in electricity prices 2004-2017 (2016 prices) Figur 1 Gennemsnitlig udvikling i elpriser 2004-2017 (2016-priser) The trend in the price of water per m3 reveals a slight increase in the price over the past 13 years, Kilde:Source: Nukissiorfiit Nukissiorfiit see figure 3 below. This increase can be explained by a need for investment in new installations and to replace old pipelines made of cast iron. Projects to replace existing pipelines and expand 1.000 7 the water supply network have been launched in several towns. The same applies to older types of 900 6 800 700 5 20 600 20 500 4 19 400 3 300 200 2 100 - 1 01-01-2005 01-10-2006 01-07-2008 01-04-2010 01-01-2012 01-10-2013 01-07-2015 Figur 2 Udvikling i varmepris og Polaroils gasoliepris 2004-2017 (2016-priser) Kilde: Nukissiorfiit

20 modtager offentlig varmeforsyning stilles lige. Dette princip gælder uanset om varmen leveres fra dieselværker eller som el-varme leveret på baggrund af el produktion fra vandkraftværker. Prisen for afbrydelig varme er lavere end prisen for fast varme. Den lavere pris for afbrydelig varme, skal ses i lyset af at kunder som modtager afbrydelig varme skal have egen backup varmeforsyning.

4.2 Energiprisernes udvikling Elprisen har de seneste år været stabil eller faldende. Prisen varierer fra lokalitet til lokalitet mellem den fastsatte minimalpris og maksimalpris, hvor udgangspunktet som nævnt er den kostægte pris. Udviklingen i priserne på el og varme kan ses af Figur 1 og Figur 2.

Da de nuværende bestemmelser om fastsættelse af priser blev vedtaget i 2004 valgte man fra politisk side, at prisen på fjernvarme og elvarme skal være på niveau med udgifterne til varme produceret på private oliefyr. Derfor følger varmeprisen olieprisen, som det ses i nedenstående Figur 2, at prisen gennem en periode har været stigende, men de seneste år har været stabil eller faldende.

5,00

4,50

4,00

3,50

3,00

2,50

2,00

1,50

1,00

0,50 01-01-2005 01-02-2007 01-03-2009 01-04-2011 01-05-2013 01-06-2015 Figur 1 Gennemsnitlig udvikling i elpriser 2004-2017 (2016-priser) Kilde: Nukissiorfiit

 Interruptible heating (electricity or water-based heating): DKK 0.71/kWh DKKDKK per kWh per DKKDKK per per litre litre 1.0001,000 7 MWh Greenland price of gas-oil - green (see axis to the right) In principle, heating prices are fixed as national uniform prices. The price of heating is determined 900900 Greenland price of gas-oil - green (see axis to the right) 6 800800 on the basis of the oil price and recovery rate in oil-fired installations. The price of heating Tariff for fixed heating - blue 700 Tariff for fixed heating - 700 5 therefore follows developments in oil prices. This means that households with their own oil-fired blue 600600 Tariff for interruptible heating - red installations and households that receive heating as a public utility service are treated equally with 500500 Tariff for interruptible heating - 4 red 400400 regard to the heating price. 3 300300 200 200 2 This principle applies regardless of whether the heat is supplied from diesel plants or as electric 100100 - - 1 heating based on electricity production from hydropower plants. The price of interruptible heating 01-01-2005 01-10-2006 01-07-2008 01-04-2010 01-01-2012 01-10-2013 01-07-2015 is lower than the price for fixed heating. The lower price of interruptible heating should be seen in FigurFigure 2 Udvikling 2 Trends i varmeprisin the price og of Polaroils heat and gasoliepris Polaroil's gas 2004-2017-oil price (20 200416-priser)-2017 (2016 prices) light of the fact that customers that receive interruptible heating must have their own backup heat Kilde:Source: Nukissiorfiit Nukissiorfiit supply. 20 4.2 Developments in energy prices 4.3 Developments in water prices The price of electricity has been stable or falling in recent years. The price varies from locality to The price of the water is determined on the basis of the local costs. The costs include the costs locality between the fixed minimum price and the fixed maximum price, with outset in the cost- associated with the operation of the water supply system in the town/village, as well as costs of reflective price. The trend in prices of electricity and heating can be seen in figures 1 and 2. regular reinvestments in waterworks and distribution systems, etc. On the basis of these costs, a cost-reflective price of drinking water is calculated. The price that the consumer has to pay for When the current provisions on determining prices were adopted in 2004, it was decided drinking water is determined by the minimum-maximum range. Customers only pay the cost- politically that the price of district heating and electric heating should reflect the costs of heating reflective price if the cost-reflective price is within the minimum-maximum range. If the cost- produced at privately owned oil-fired installations. Therefore, the price of heating follows the reflective price lies outside the minimum-maximum range, either the minimum price or the price of oil, and, as can be seen in figure 2 below, the price increased for a period of time but has maximum price is paid for drinking water. been stable or falling in recent years.

DKK per In the villages where citizens obtain drinking water for their own consumption from a public filling 5.00 kWh point, the individual municipality pays for the citizens' water consumption. In several villages, 4.50 water mains have been laid out to public buildings such as schools, service houses, etc. During the 4.00 Maximum tariff for electricity - summer months, summer mains and pipes are provided in several localities to supply drinking 3.50 red water to citizens. 3.00 2.50 Where drinking water is supplied to individual households, either via water mains or via delivery 2.00 by water trucks (bulk water delivery), the owner of the property pays for the drinking water 1.50 Minimum tariff for electricity - consumed. Customers who are supplied via bulk water delivery pay the fixed drinking water price 1.00 blue as well as 50% of the operating costs associated with bulk water delivery. Bulk water is delivered 0.50 to 13 towns and one village.

Figure 1 Average development in electricity prices 2004-2017 (2016 prices) Source: Nukissiorfiit The trend in the price of water per m3 reveals a slight increase in the price over the past 13 years, see figure 3 below. This increase can be explained by a need for investment in new installations and to replace old pipelines made of cast iron. Projects to replace existing pipelines and expand the water supply network have been launched in several towns. The same applies to older types of

20 20 19 21 4.3 Vandprisernes udvikling Prisen på vand fastsættes ud fra de lokale omkostninger. I omkostninger indgår de omkostninger, der er forbundet med driften af vandforsyningen i byen/bygden, samt reinvesteringer der løbende foretages på såvel vandværkerne som distributionsnettene m.m. Ud fra omkostningerne beregnes den kostægte pris for drikkevandet. Den pris som forbrugeren kommer til at betale for drikkevandet er bestemt af minimal-maksimalbåndet. Kun hvis den kostægte pris ligger inden for minimal-maksimalbåndet betales den kostægte pris. Ligger den kostægte pris uden for den minimal-maksimalbåndet betales enten den minimale eller maksimale pris fra drikkevandet.

I bygderne, hvor borgeren selv henter drikkevand til husstandens forbrug ved et offentligt tapsted, er det den enkelte kommune, der betaler for borgernes vandforbrug. I flere bygder, er der fremført vandledning til offentlige bygninger som skoler, servicehuse m.v. I sommermånederne udlægges der flere steder sommerledningsnet til forsyning af borgerne.

Hvor der leveres drikkevand til de enkelte husstande enten via ledningsnet eller ved levering med tankbil, er det ejendomsejeren som betaler for det forbrug der er. Kunder der forsynes med drikkevand fra tankbil betaler den fastsatte pris for vandet samt 50 % af driftsomkostningerne forbundet med levering af vand. I alt er der vandkørsel i 13 byer samt 1 bygd.

Ved at betragte prisernes udvikling for vand pr. m3 ses en svag stigning i løbet af de seneste 13 år, se Figur 3 nedenfor. Stigningen kan begrundes i et behov for investeringer i nye anlæg samt ikke mindst en naturlig udskiftning af gamle rørledninger af støbejern. I flere byer er udskiftning af eksisterende rørledninger, og udvidelse af vandforsyningsnettet, igangsat. Tilsvarende gælder for dewaterworks, ældre typer at vandværk,which new hvor treatment der tillige and installeresfiltration equipmentnyt rensnings- is being og filtreringsudstyr installed, along samtwith målrettettargeted watervandbehandlingsenheder, treatment units that derensure sikrer high en- qualitygod kvalitet drinking til slutbrugeren. water to end users. DKK per m3 DKK per m3 45,0045.00 40,0040.00 35,0035.00 Blue: Maximum tariffs for water Blue: Maximum tariffs for water 30,0030.00 25,0025.00 20,0020.00 15,0015.00 Red: Minimum tariffs for water 10,0010.00 Red: Minimum tariff for water

5,005.00

0,000.00 01-01-2005 01-01-2007 01-02-2009 01-02-2011 01-01-2013 01-02-2015 01-01-2017

FigurFigure 3 Prisudvikling3 Trends in drinking for drikkevand water prices (Basis (Baseline år 2016 year- Prisen 2016 viser - the kun price for is Nukissiorfiit) for Nukissiorfiit only) Kilde:Source: Nukissiorfiit Nukissiorfiit

4.4 The need for a more solidarity-based price system The villages and outlying districts where the population has the lowest income level today pay the highest prices for electricity and water. Similarly, industries and businesses pay higher prices 21for electricity and water in towns and villages where there is already a difficult commercial basis. 4.4.1 The unequal distribution of income As can be seen in table 1 below, Kommuneqarfik is the only municipality in which the average personal income is above the national average. Kommunia lies slightly below the national average, whereas the average income in Kommune and Kommunia is almost 20 percent below the national average.

Table 1 Average personal income (gross income) by municipality

DKK 2010 2011 2012 2013 2014 2015 All of Greenland 201,817 207,349 213,126 217,299 218,491 229,056 Kommune Kujalleq 164,616 170,157 173,179 177,617 176,163 186,984 Kommuneqarfik Sermersooq 249,889 254,280 258,997 264,517 261,535 275,191 Qeqqata Kommunia 193,751 200,464 207,257 208,790 214,861 226,246 Qaasuitsup Kommunia 161,540 167,248 173,439 176,135 180,704 185,904

Source: Statistics Greenland, http://bank.stat.gl/INDP1

Broken down by the previous municipal borders, which are now referred to as districts, we see that the average income in Nuuk district is significantly higher than in the other districts. In 2015, the average income in Nuuk district was DKK 305,000, and this is almost 30% higher than in district, which has the second highest income level. The average income in all other districts was below the national average. 22 21 waterworks, at which new treatment and filtration equipment is being installed, along with Gross income targeted water treatment units that ensure high-quality drinking water to end users. 350.000 Gross income DKK per m3 300.000 45.00 350,000 250.000 40.00 300,000 200.000 250,000 35.00 Blue: Maximum tariffs for water 150.000 200,000 30.00 100.000 150,000 Gross income 25.00 50.000 100,000 0 Gross income 20.00 50,000 All of 15.00 0 Nuuk Tasiilaq Aasiaat

Sisimiut Paamiut Maniitsoq 10.00 Red: Minimum tariff for water Nanortalik All of Nuuk Qasigiannguit Narsaq Aasiaat Ilulissat Tasiilaq Sisimiut Paamiut Qaanaaq

5.00 Qaqortoq Maniitsoq Nanortalik Upernavik Greenland Kangaatsiaq Uummannaq

0.00 Qasigiannguit Qeqertarsuaq Ittoqqortoormiit

Figure 3 Trends in drinking water prices (Baseline year 2016 - the price is for Nukissiorfiit only) Figure 4 Average personal income (gross income) by district in 2015 Source: Statistics Greenland, http://bank.stat.gl/INDP1 Source: Nukissiorfiit As can be seen in figure 5 below, the income level in villages is significantly lower than in towns. At 4.4 The need for a more solidarity-based price system national level, the average town dweller earned DKK 238,000, whereas a person living in a village The villages and outlying districts where the population has the lowest income level today pay the earned only DKK 165,000. The differences between towns and villages vary from municipality to highest prices for electricity and water. Similarly, industries and businesses pay higher prices for municipality. The largest difference is in Kommuneqarfik Sermersooq, where the average income electricity and water in towns and villages where there is already a difficult commercial basis. in towns was around double that of villages. This is because the majority of the town population 4.4.1 The unequal distribution of income reside in Nuuk where the income level is high, while the population in the villages is concentrated primarily in the Tasiilaq district, which is characterised by low average income levels. As can be seen in table 1 below, Kommuneqarfik Sermersooq is the only municipality in which the average personal income is above the national average. Qeqqata Kommunia lies slightly below the However in Qeqqata Kommunia, the average income in towns and villages is almost the same, and national average, whereas the average income in Kommune Kujalleq and Qaasuitsup Kommunia is this is mainly due to a very high income level in . The income level in almost 20 percent below the national average. was also very high and this pulled average income levels up in villages in Kommune Kujalleq.

Table 1 Average personal income (gross income) by municipality

DKK 2010 2011 2012 2013 2014 2015 All of Greenland 201,817 207,349 213,126 217,299 218,491 229,056 Kommune Kujalleq 164,616 170,157 173,179 177,617 176,163 186,984 Kommuneqarfik Sermersooq 249,889 254,280 258,997 264,517 261,535 275,191 Qeqqata Kommunia 193,751 200,464 207,257 208,790 214,861 226,246 Qaasuitsup Kommunia 161,540 167,248 173,439 176,135 180,704 185,904

Source: Statistics Greenland, http://bank.stat.gl/INDP1

Broken down by the previous municipal borders, which are now referred to as districts, we see that the average income in Nuuk district is significantly higher than in the other districts. In 2015, the average income in Nuuk district was DKK 305,000, and this is almost 30% higher than in Sisimiut district, which has the second highest income level. The average income in all other districts was below the national average.

22 21 22 23 GrossGross income income 300.000 300,000

250.000 250,000

200.000 200,000

150.000 150,000 Gross income

100.000 Gross income 100,000

50.000 50,000

0 0 Town Village Town Village Town Village Town Village Town Village Town Village Town Village Town Village Kommune Kujalleq Kommuneqarfik Qeqqata Qaasuitsup Kommune Kujalleq KommuneqarfikSermersooq QeqqataKommunia Kommunia QaasuitsupKommunia Sermersooq Kommunia

Figure 5 Average gross income in towns and villages 2015 Source: Statistics Greenland, http://bank.stat.gl/INDP1

Thus, in general, the lowest income levels are in those parts of Greenland that pay the highest prices for electricity and water. This means that there is a need for a more solidarity-based price system that reduces costs for low-income groups. 4.4.2 The uneven distribution of business activity The municipalities of Greenland are moreover characterised by large differences in business development.

Table 2 below regarding the number of businesses broken down by municipality and payroll range shows that the majority of businesses have payrolls of more than DKK 1 million in Kommuneqarfik Sermersooq. The trend is even more pronounced if we look at businesses with payrolls of more than DKK 5 million and 10 million, respectively.

The highest number of businesses is in Qaasuitsup Kommunia, but by far the majority of these businesses are small and have only modest payrolls.

Table 2 Businesses by municipality and payroll range in 2015 Number of businesses by municipality and payroll range in 2015 Number / payroll range in DKK 000- 250,000- 1,000,000- More than Total 250,000 1,000,000 5,000,000 10,000,000 Kommuneqarfik Sermersooq 657 354 274 61 1,346 Qeqqata Kommunia 339 119 93 6 557 Kommune Kujalleq 227 83 39 3 352 Qaasuitsup Kommunia 1,031 519 103 7 1,660 Source: Statistics Greenland 24 23 This uneven distribution of business activity also calls for the establishment of a more solidarity- Gross income based price system that will reduce the production costs of outlying districts with regard to the

300,000 production of electricity and water.

250,000 4.5 New pricing model for electricity and water According to Naalakkersuisut there are therefore very good reasons to introduce a new pricing 200,000 model based on principles of solidarity and fairness in order to ensure more equal conditions for families and for business development throughout Greenland. 150,000

Gross income 100,000 Naalakkersuisut believes that this objective for solidarity is best achieved through the re- introduction of a uniform price system. 50,000

0 However, Naalakkersuisut is resolved that a new uniform price system with lower electricity and Town Village Town Village Town Village Town Village water rates should not be financed through an increase in the price of electricity and water in the Kommune Kujalleq Kommuneqarfik Qeqqata Kommunia Qaasuitsup large towns, as this financing model would be detrimental to welfare services and business Sermersooq Kommunia opportunities. Figure 5 Average gross income in towns and villages 2015 Source: Statistics Greenland, http://bank.stat.gl/INDP1 The following is an outline of a number of alternative pricing models. Naalakkersuisut Thus, in general, the lowest income levels are in those parts of Greenland that pay the highest recommends that the uniform pricing model be implemented, see Pricing model 1. This model will prices for electricity and water. This means that there is a need for a more solidarity-based price ensure lower electricity and water prices for all groups in Greenland. system that reduces costs for low-income groups. The six alternative models, which are outlined below (the descriptions of models 2-5 are primarily 4.4.2 The uneven distribution of business activity given in Annex 2 to this sector plan), vary from uniform pricing models to pricing models similar to The municipalities of Greenland are moreover characterised by large differences in business the current model with minimum and maximum prices. These latter models are referred to as development. solidarity models.

Table 2 below regarding the number of businesses broken down by municipality and payroll range Furthermore, variations of both model types are outlined. Here, the fishing industry either shows that the majority of businesses have payrolls of more than DKK 1 million in Kommuneqarfik continues with the existing system, in which it pays 41.5% of the local production costs, or a new Sermersooq. The trend is even more pronounced if we look at businesses with payrolls of more system is introduced in which the fishing industry contributes 100% and thus pays the same price than DKK 5 million and 10 million, respectively. as other customers.

The highest number of businesses is in Qaasuitsup Kommunia, but by far the majority of these 4.5.1 Naalakkersuisut's recommendation for new prices businesses are small and have only modest payrolls. Pricing model 1 will entail uniform prices throughout Greenland, see table 3. The new prices will be DKK 1.60 per kWh for electricity and DKK 19 per m3 for water. The fishing industry rate will be Table 2 Businesses by municipality and payroll range in 2015 41.5% of the local unit cost of electricity and water in the individual town and village, however the Number of businesses by municipality and payroll range in 2015 rate will not be higher than the electricity and water tariff that other consumers pay and it will not Number / payroll range in DKK 000- 250,000- 1,000,000- More than Total be lower than 41.5% of the minimum price paid by other consumers. This means that the fishing 250,000 1,000,000 5,000,000 10,000,000 industry's minimum price of electricity will be DKK 0.66 per kWh and its maximum price will be Kommuneqarfik Sermersooq 657 354 274 61 1,346 Qeqqata Kommunia 339 119 93 6 557 DKK 1.60 per kWh. For water, the fishing industry's minimum price will be DKK 7.89 per m3 and Kommune Kujalleq 227 83 39 3 352 the maximum price will be DKK 19 per m3. Qaasuitsup Kommunia 1,031 519 103 7 1,660 Source: Statistics Greenland 24 24 25 23 Table 3 Pricing model 1 Model 1 - Uniform pricing Previous price (min/max) New price (uniform price) Electricity per kWh 1.63/3.25 1.60 Water per m3 14.25 / 33.40 19 Fishing industry rate 41.5% of the local unit cost 41.5% of the local unit cost

4.5.2 Savings for businesses, citizens and the public sector The price reform will entail savings for all - both private consumers and businesses. The total savings for society will amount to around DKK 150 million. The reform will bring about considerable savings on electricity and water in all sectors. The distribution of savings is shown in table 4.

Table 4 Pricing model 1 - Savings for large customer groups Model 1 - Savings for large customer groups Net result Million DKK Greenland Self-Government incl. 38.024 Mittarfeqarfiit Municipalities 22.979 Private consumers 56.188 Businesses 21.828 Fishing industry 10.471 149.490

4.5.3 Savings for families in towns and villages The price reductions will result in savings for an average family in all towns and villages. The savings will be greatest in the towns and villages that today pay high unit costs or maximum prices. The savings will be correspondingly smaller in the towns that today have low production costs / pay the minimum price.

As can be seen below, the savings for smaller towns and villages will be considerable. For example, a standard family in Tasiilaq with two adults and two children will have an annual saving of almost DKK 8,000.

In certain villages with local water supply, the water bill is paid by the municipality on behalf of the citizens. The total savings in these villages will be lower than in certain outlying districts, because the citizens in these villages today get the water free of charge. The savings for these citizens will be linked to the price reduction for electricity. As shown in table 5, however, the savings will be considerable. For example, a standard village family with two parents and two children in will have an annual saving of DKK 5,775.

26 25 Table 3 Pricing model 1 Table 5 Pricing model 1 – Annual savings for households Model 1 - Uniform pricing Previous price (min/max) New price (uniform price) Model 1 – Annual Savings for a family with two Savings for a family with one Electricity per kWh 1.63/3.25 1.60 savings for parents and two children parent and two children Water per m3 14.25 / 33.40 19 households Fishing industry rate 41.5% of the local unit cost 41.5% of the local unit cost (electricity and water) Town/village Family 1 - DKK Family 1 - % Family 2 Family 2 - % Tasiilaq 7,935 48% 5,565 49% 4.5.2 Savings for businesses, citizens and the public sector Kullorsuaq 5,775 51% 4,125 51% The price reform will entail savings for all - both private consumers and businesses. The total Qaqortoq 4,785 36% 3,315 36% savings for society will amount to around DKK 150 million. Ilulissat 3,168 27% 2,262 28% The reform will bring about considerable savings on electricity and water in all sectors. The Nuuk 1,088 11% 730 11% distribution of savings is shown in table 4. Sisimiut 415 5% 282 5% 4.5.4 Savings for the fishing industry Table 4 Pricing model 1 - Savings for large customer groups As mentioned above, the fishing industry rate will be 41.5% of the local unit cost of electricity and Model 1 - Savings for large customer groups water in the individual town and village, however the rate will not be higher than the electricity Net result Million DKK and water tariff that other consumers pay, and it will not be lower than 41.5% of the minimum Greenland Self-Government incl. 38.024 Mittarfeqarfiit price paid by other consumers. This means that the fishing industry's minimum price of electricity Municipalities 22.979 will be DKK 0.66 per kWh and its maximum price will be DKK 1.60 per kWh. For water, the fishing Private consumers 56.188 industry's minimum price will be DKK 7.89 per m3 and the maximum price will be DKK 19 per m3. Businesses 21.828 Fishing industry 10.471 149.490 4.5.5 Comparison with electricity and water prices in other countries The following section compares the prices of electricity and water in Greenland with the prices for different customer groups in a number of other countries. 4.5.3 Savings for families in towns and villages The price reductions will result in savings for an average family in all towns and villages. The 4.5.5.1 Comparison with international prices for private electricity consumers savings will be greatest in the towns and villages that today pay high unit costs or maximum prices. The savings will be correspondingly smaller in the towns that today have low production costs / Electricity prices for private customers pay the minimum price. The existing Greenland minimum prices for electricity of 1.63 DKK/kWh are considerably lower than the EU average price (EU28) of DKK 2.46/kWh for private customers with an annual As can be seen below, the savings for smaller towns and villages will be considerable. For example, consumption of up to 1,000 kWh, see figure 6. a standard family in Tasiilaq with two adults and two children will have an annual saving of almost DKK 8,000. However, the maximum price of 3.25 DKK/kWh is among the highest electricity prices in Europe and lies well above Europe's highest average price of DKK 2.86/kWh in . In certain villages with local water supply, the water bill is paid by the municipality on behalf of the citizens. The total savings in these villages will be lower than in certain outlying districts, because If uniform prices were to be introduced in Greenland at a level corresponding to the existing the citizens in these villages today get the water free of charge. The savings for these citizens will minimum prices, Greenland would be more in line with the EU average price with regard to be linked to the price reduction for electricity. As shown in table 5, however, the savings will be electricity for ordinary users (households and smaller businesses). considerable. For example, a standard village family with two parents and two children in Kullorsuaq will have an annual saving of DKK 5,775. Naalakkersuisut's price reform with a uniform price of electricity at DKK 1.60 per kWh can be compared with the following (figures 6 and 7) energy statistics from Eurostat, which show price developments since 2007. The prices are shown for an annual consumption of less than 1,000 kWh

26 25 26 27 FigurFigur 6 .6 .Derimod Derimod er er maksimalprisen maksimalprisen på på 3,25 3,25 kr./kWh kr./kWh blandt blandt Europas Europas højeste højeste elpris, elpris, og og overgår overgår såledessåledes klart klart Europas Europas højeste højeste gennemsnits gennemsnits pris pris på på 2,86 2,86 kr kr./kWh,./kWh, som som er er at at finde finde i Danmark. i Danmark.

HvisHvis der der indføres indføres enspriser enspriser i Grønland,i Grønland, på på niveau niveau med med nuværende nuværende minimalpriser, minimalpriser, vil vil Grønland Grønland såledessåledes være være godt godt med med i forholdi forhold til til EU's EU's gennemsnitspris, gennemsnitspris, hvad hvad angår angår el eltil til normale normale brugere brugere (husholdninger(husholdninger og og mindre mindre virksomheder). virksomheder).

NaalakkersuisutsNaalakkersuisuts prisreform prisreform med med en en enspris enspris på på el elpå på kr. kr. 1,60 1,60 pr. pr. kWh kWh kan kan sammenlignes sammenlignes med med nedenståendenedenstående (Figur (Figur 6 6og og Figur Figur 7 )7 energistatistik) energistatistik fra fra eurostat, eurostat, som som viser viser prisudviklingen prisudviklingen siden siden 2007and2007 . morePriserne. Priserne than vises vises15,000 for for et kWh, et forbrug forbrug respectively. på på henholdsvis henholdsvis As can under beunder seen, 1.000 1.000 the kWh kWhprice og og reformover over 15.000 15.000will mean kWh. kWh. that Som Som small det det seconsumersses svil vil prisreformen prisreformen will experience betyde, betyde, atvery at små småcompetitive forbrugere forbrugere pricesvil vil opleve opleve compared særdeles særdeles with konkurrencedygtige konkurrencedygtigea number of European priser priser sammenlignetcountries.sammenlignet For medlarger med en privateen række række consumers, europæiske europæiske however, lande. lande. GreenlandVed Ved en en sammenligning pricessammenligning will continue med med tostørre bestørre among private private the FigurFigur XX: XX: forbrugereLevelhighest.forbrugereLevel 3: Elpris 3: Elpris inkl. inkl. PSOvil PSOvil afgifterde afgifterde grønlandske og grønlandske momsog moms for forforbrugsinterval forbrugsinterval priser priser IA: fortsat IA:< 1000fortsat < 1000 kWh. kWh. ligge ligge i den i den høje høje ende. ende. Priserne Priserne er vist er vist i DKK i DKK øre øre / kWh / kWh i faste i faste priser priser med med basisår basisår 2016. 2016.

350,00350.00350,00

300,00300.00300,00 EU-28EU-28 250.00 250,00250,00 BelgiumBelgium DenmarkDenmark 200,00200,200,00 00 GermanyGermany France 150.00 France 150,00150,00 ItalyItaly

100.00 NetherlandsNetherlan 100,00100,00 ds Sweden Sweden 50.00 UK 50,0050,00 UK

0.00 0,000,00 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

DKKDKK øre/kWh øre/kWh 20072007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 EU-28EUEU-28-28 207,35207.35207,35 209,14209.14 209,14 207,36207.36 207,36 213,77213.77 213,77 214,96214.96 214,96 215,57215.57 215,57 227,38227.38 227,38 234,29234.29 234,29 242,30242.30 242,30 246,44246.44 246,44 * * * BelgienBelgiumBelgien 212,80212.80212,80 265,49265.49 265,49 225,14225.14 225,14 235,26235.26 235,26 236,26236.26 236,26 230,92230.92 230,92 221,42221.42 221,42 198,36198.36 198,36 214,69214.69 214,69 304,45304.45 304,45 * * * DanmarkDenmarkDanmark 227,18227.18227,18 245,02245.02 245,02 236,47236.47 236,47 237,23237.23 237,23 251,09251.09 251,09 248,35248.35 248,35 245,13245.13 245,13 248,45248.45 248,45 248,90248.90 248,90 286,21286.21 286,21 * * * TysklandGermanyTyskland 274,31274.31274,31 279,62279.62 279,62 289,97289.97 289,97 295,51295.51 295,51 299,33299.33 299,33 303,59303.59 303,59 321,07321.07 321,07 323,62323.62 323,62 325,56325.56 325,56 339,23339.23 339,23 * * * France 192.74 186.04 182.62 185.18 189.42 189.99 211.85 199.92 209.29 210.09 * FrankrigFrankrig 192,74192,74 186,04 186,04 182,62 182,62 185,18 185,18 189,42 189,42 189,99 189,99 211,85 211,85 199,92 199,92 209,29 209,29 210,09 210,09 * * Italy * 227.03 233.18 224.85 203.39 198.09 207.83 218.41 219.50 234.97 * ItalienItalien ** 227,03 227,03 233,18 233,18 224,85 224,85 203,39 203,39 198,09 198,09 207,83 207,83 218,41 218,41 219,50 219,50 234,97 234,97 * * Netherlands * * * * * * * * * * * HollandHolland * * ************** ****** Sweden 234.94 236.04 209.76 263.15 269.65 271.06 273.97 268.88 257.21 271.24 * SverigeUKSverige 234,94153.95234,94 236,04144.05 236,04 209,76142.69 209,76 263,15126.75 263,15 269,65130.14 269,65 271,06148.72 271,06 273,97161.35 273,97 268,88182.90 268,88 257,21195.24 257,21 271,24184.70 271,24 * * * UK UK 153,95153,95 144,05 144,05 142,69 142,69 126,75 126,75 130,14 130,14 148,72 148,72 161,35 161,35 182,90 182,90 195,24 195,24 184,70 184,70 * * Source: Eurostat Kilde:Kilde: Eurostat Eurostat

Figure 6 The price of electricity, including PSO taxes and VAT, for consumer interval < 1,000 kWh FigurFigur 6 Elpris6 Elpris inkl. inkl. PSO PSO afgifter afgifter og og moms moms for for forbrugsinterval forbrugsinterval < 1.000< 1.000 kWh kWh Prices are shown in øre/kWh in fixed prices with baseline year 2016 PrisernePriserne er er vist vist i DKK i DKK øre øre / kWh / kWh i faste i faste priser priser med med basisår basisår 2016 2016 Kilde:Source:Kilde: Eurostat Eurostat Eurostat og og Energistyrelsenand Energistyrelsen the Danish Energy Agency

2727

28 27 FigurFigur XX: XX: LevelLevel 3: 3:Elpris Elpris inkl. inkl. PSO PSO afgifter afgifter og og moms moms for for forbrugsinterval forbrugsinterval IE: IE: > 15 > 15 000 000 kWh. kWh. PrisernePriserne er ervist vist i DKK i DKK øre øre / kWh / kWh i faste i faste priser priser med med basisår basisår 2016. 2016.

300.00 and more than 15,000 kWh, respectively. As can be seen, the price reform will mean that small 300,00300,00 consumers will experience very competitive prices compared with a number of European 250.00 250,00250,00 countries. For larger private consumers, however, Greenland prices will continue to be among the EU-28EU-28 Belgium highest. 200.00 Belgium 200,00200,00 Denmark Denmark Germany 150.00 Germany 150,00150,00 France 350.00 France Italy Italy 300.00 100.00 Netherland 100,00100,00 Netherlands EU-28 s

250.00 Belgium Sweden 50.00 Denmark 50,0050,00 UK 200, 00 Germany 0.00 France 150.00 0,000,00 Italy 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

100.00 Netherlan ds Sweden DKKDKK øre/kWh øre/kWh 20072007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 50.00 EU-28 118.04 120.32 125.88 125.95 130.95 134.14 136.52 138.85 143.22 138.67 * UK EU-28EU-28 118,04118,04 120,32 120,32 125,88 125,88 125,95 125,95 130,95 130,95 134,14 134,14 136,52 136,52 138,85 138,85 143,22 143,22 138,67 138,67 * * BelgienBelgiumBelgien 136,06136.06136,06 138,95138.95 138,95 117,57117.57 117,57 120,27120.27 120,27 127,92127.92 127,92 132,43132.43 132,43 129,83129.83 129,83 120,20 120,20120.20 127,13 127,13127.13 133,31 133,31133.31 * * * 0.00 DanmarkDenmarkDanmark 180,32180.32180,32 197,90197.90 197,90 188,84188.84 188,84 184,54184.54 184,54 198,92198.92 198,92 197,06197.06 197,06 168,78168.78 168,78 172,00 172,00172.00 167,35 167,35167.35 164,81 164,81164.81 * * * TysklandGermanyTyskland 154,61154.61154,61 157,23157.23 157,23 166,92166.92 166,92 175,53175.53 175,53 181,33181.33 181,33 184,03184.03 184,03 202,64202.64 202,64 201,87 201,87201.87 199,84 199,84199.84 199,59 199,59199.59 * * * FrankrigFranceFrankrig 83,1183.1183,11 82,6582.65 82,65 85,1085.10 85,10 91,2291.22 91,22 97,4497.44 97,44 98,4398.43 98,43 98,1398.13 98,13 102,95 102,95102.95 111,87 111,87111.87 114,91 114,91114.91 * * * Italy * 185.72 247.01 222.84 224.29 231.75 231.15 247.13 249.77 213.97 * ItalienItalien ** 185,72 185,72 247,01 247,01 222,84 222,84 224,29 224,29 231,75 231,75 231,15 231,15 247,13 247,13 249,77 249,77 213,97 213,97 * * Netherlands 149.67 * 189.45 172.98 173.51 178.01 178.03 177.20 172.19 181.12 * EU-28 207.35 209.14 207.36 213.77 214.96 215.57 227.38 234.29 242.30 246.44 * HollandHolland 149,67149,67 * * 189,45 189,45 172,98 172,98 173,51 173,51 178,01 178,01 178,03 178,03 177,20 177,20 172,19 172,19 181,12 181,12 * * Sweden 106.67 110.22 102.58 116.62 123.20 118.61 118.72 106.56 100.54 99.57 * Belgium 212.80 265.49 225.14 235.26 236.26 230.92 221.42 198.36 214.69 304.45 * SverigeSverige 106,67106,67 110,22 110,22 102,58 102,58 116,62 116,62 123,20 123,20 118,61 118,61 118,72 118,72 106,56 106,56 100,54 100,54 99,57 99,57 * * Denmark 227.18 245.02 236.47 237.23 251.09 248.35 245.13 248.45 248.90 286.21 * UK 102.54 118.81 107.44 97.09 98.64 110.77 112.10 121.77 134.28 121.17 * UKUK 102,54102,54 118,81 118,81 107,44 107,44 97,09 97,09 98,64 98,64 110,77 110,77 112,10 112,10 121,77 121,77 134,28 134,28 121,17 121,17 * * Germany 274.31 279.62 289.97 295.51 299.33 303.59 321.07 323.62 325.56 339.23 * Source: Eurostat Kilde:Kilde: Eurostat Eurostat France 192.74 186.04 182.62 185.18 189.42 189.99 211.85 199.92 209.29 210.09 * Italy * 227.03 233.18 224.85 203.39 198.09 207.83 218.41 219.50 234.97 * Netherlands * * * * * * * * * * * Figure 7 The price of electricity, including PSO taxes and VAT, for consumer interval > 15,000 kWh Sweden 234.94 236.04 209.76 263.15 269.65 271.06 273.97 268.88 257.21 271.24 * FigurFigur 7 7Elpris Elpris inkl. inkl. PSO PSO afgifter afgifter og og moms moms for for forbrugsinterval forbrugsinterval > >15.000 15.000 kWh kWh UK 153.95 144.05 142.69 126.75 130.14 148.72 161.35 182.90 195.24 184.70 * Prices are shown in øre/kWh in fixed prices with baseline year 2016 PrisernePriserne er er vist vist i DKKi DKK øre øre / kWh/ kWh i fastei faste priser priser med med basisår basisår 2016 2016 Source: Eurostat Source: Eurostat and the Danish Energy Agency Kilde:Kilde: Eurostat Eurostat og og Energistyrelsen Energistyrelsen Figure 6 The price of electricity, including PSO taxes and VAT, for consumer interval < 1,000 kWh 4.5.5.2 Comparison with international electricity prices for industry 4.5.5.24.5.5.2 Sammenligning Sammenligning med med internationale internationale el el priser priser for for industrien industrien Prices are shown in øre/kWh in fixed prices with baseline year 2016 Source: Eurostat and the Danish Energy Agency ElpriserElpriser til til fiskeindustrien fiskeindustrien As mentioned above, Naalakkersuisut's price reform means that the fishing industry's minimum NaalakkersuisutsNaalakkersuisuts prisreform prisreform betyder betyder som som nævnt, nævnt, at at fiskeindustriens fiskeindustriens minimumpris minimumpris på på el el bliver bliver kr. kr. price of electricity will be DKK 0.66 per kWh and its maximum price will be DKK 1.60 per kWh (the 0,660,66 pr. pr. kWh kWh og og maksimalt maksimalt bliver bliver kr. kr. 1,60 1,60 pr. pr. kWh kWh (prisen (prisen for for det det øvrige øvrige erhvervsliv). erhvervsliv). Prismodel Prismodel 1 1 price for other businesses). Model 1 will improve the competitiveness of the fishing industry vilvil forbedre forbedre fiskeindustriens fiskeindustriens konkurrenceevnen konkurrenceevnen betydeligt betydeligt over over hele hele landet. landet. considerably across the whole of Greenland.

DenDen generellegenerelle erhvervspriserhvervspris forfor elel ogog fiskeindustritaksternefiskeindustritaksterne måmå genereltgenerelt sigessiges atat værevære The overall industry price of electricity and the fishing industry rates can generally be said to be konkurrencedygtigekonkurrencedygtige med med europæiske europæiske priser priser for for erhvervskunder erhvervskunder med med et et forbrug forbrug på på under under 0,02 0,02 competitive vis-a-vis European prices paid by business customers with a consumption of less than GWh.GWh. 0.02 GWh.

VedVed en en sammenligning sammenligning med med de de europæiske europæiske elpriser elpriser til til meget meget store store erhvervskunder erhvervskunder (energiintensiv (energiintensiv When comparing with the European electricity prices offered to very large business customers industri)industri) er er reformens reformens enspris enspris på på el el (til (til almindelige almindelige erhvervskunder) erhvervskunder) væsentlig væsentlig højere højere end end samtlige samtlige (energy-intensive industries), the reform's uniform price of electricity (for ordinary business landelande omfattet omfattet af af undersøgelsen. undersøgelsen. Nuuk Nuuk og og Sisimiut, Sisimiut, som som har har de de laveste laveste fiskeritariffer fiskeritariffer i Grønlandi Grønland customers) is significantly higher than in all the other countries in the comparison. Nuuk and medmed enen nuværendenuværende elprielpris s påpå 0,680,68 kr./kWh,kr./kWh, matchermatcher alleredeallerede rimmeligrimmelig godtgodt EU’sEU’s Sisimiut, which have the lowest fishing industry tariffs in Greenland, i.e. DKK 0.68 per kWh at gennemsnitspriser,gennemsnitspriser, som som vist vist i Figuri Figur 8 8og og Figur Figur 9 .9 . present, already match the EU average prices fairly well, see figures 8 and 9.

28 27 28 29 2828

Theee proposedoreslede oreslede new e e minimummiimmsris miimmsris price ororof electricityiseidstrie iseidstrie at DKK 0.66el el per r r kWh r rfor the fishing il il sledes sledes industry oredre oredre will e oreslede e miimmsris or iseidstrie el r r il sledes oredre thereforeeee llerede llerede oreslede improve gse gse e an orreedgtig orreedgtigmiimmsris already very competitiveor iseidstrieorold orold situationd d gr gr withel elrise elrise regard r to r the price il of sledes electricity. oredre e llerede gse orreedgtig orold d gr elrise e llerede gse orreedgtig orold d gr elrise

Seee e ogs ogsalso eltableel 6 below edeoredeor on existing oror dede rede redeGreenland grldsepricesgrldse for the riser riserfishing tiltil industry iseidstrieiseidstrie in selected i i dlgtedlgte towns, er erand e ogs el edeor or de rede grldse riser til iseidstrie i dlgte er tableeogog elogs el 7 on el what or or d d theedeor risereprices risere willor il il debe re re redelike med undermed rismodel rismodel pricing grldse model 1.riser til iseidstrie i dlgte er og el or d risere il re med rismodel og el or d risere il re med rismodel

TableTabel Tabel 66 6 ExistingNuværende Nuværende prices priser priser for thetil til fiskeindustrien fiskeindustrien fishing industry Tabel 6 Nuværende priser til fiskeindustrien ExistingTabel 6 Nuværendeprices for the priser fishing til fiskeindustrien industry in selected NuværendeTabelNuværende 6 Nuværende priser priser til prisertil fiskeindustrien fiskeindustrien til fiskeindustrien i iudvalgte udvalgte byer byer (2017 (2017 priser) priser) Nuværende priser til fiskeindustrien i udvalgte byer (2017 priser) NuukNuværende priserQaqortoqortoorto til fiskeindustrien Tasiilaqsiilsiil i udvalgte byerortliNanortalikortli (2017 priser) Qaanaaq UeriUpernavikUeri orto siil ortli Ueri DKK 0.68/kWh r r DKKorto 0.97/kWhr r DKKsiil 1.42/kWhr r ortliDKK 1.99/kWhr r DKK 2.44/kWhr r UeriDKK r3.25/kWh r r r r r r r r r r r r r

TableTabel Tabel 77 7 PricingPrismodel Prismodel model 1 1 priser priser 1 - Prices til til fiskeindustrien fiskeindustrien for the fishing industry Tabel 7 Prismodel 1 priser til fiskeindustrien ModelTabelModel 7 1 Prismodel1 priser priserPrices til tilfor fiskeindustrien1 fiskeindustrien priserthe fishing til fiskeindustrien industry i iudvalgte udvalgte in selected byer byer towns Model 1 priser til fiskeindustrien i udvalgte byer (PriserneModel(Priserne 1 priser d. d. 1 1 januar januar til fiskeindustrien 2018, 2018, hvis hvis prisreformen prisreformen i udvalgte byer godkendes) godkendes) (Priserne d. 1 januar 2018, hvis prisreformen godkendes) Nuuk(Priserne d. 1 januarQaqortoq 2018, hvis prisreformenTasiilaq godkendes)Nanortalik Qaanaaq Upernavik ortoorto siilsiil ortliortli UeriUeri orto siil ortli Ueri DKK 0.66/kWh r r DKKorto 0.91/kWhr r DKKsiil 1.02/kWhr r ortliDKK 1.60/kWhr r DKK 1.60/kWhr r UeriDKK r1.60/kWh r r r r r r r r r r r r r

500.00 EU-28 EUEUEU-28 450.00 EU EU elgieEUBelgiumelgie 400.00 elgieBelgium elgie elgieDenmark 350.00 mrelgiemr mr mrDenmark mr 300.00 mrGermany sldmrsld sld sldGermany 250.00 sldGreenland maximum rldsldrld msimlris msimlris rldpriceGreenland businesses msimlris maximum and rld msimlris ererrldfishingererprice industrybusinesses og ogmsimlris iseidstri iseidstri and 200.00 rlderer og msimlris iseidstri rldererGreenlandrldfishing og industrymsimlrismiimlris minimum iseidstrimiimlris price ererrld og miimlris iseidstri rldererbusinesses og miimlris iseidstri 150.00 ererrldererGreenland og miimlris iseidstri minimum rlderer miimlris rldererGreenlandprice businesses miimlris minimum price ererrldrld miimlris miimlris 100.00 rldererfishing industry miimlris iseidstrirldereriseidstri miimlris rldiseidstriGreenland miimlris minimum iseidstrierigerlderige miimlris 50.00 iseidstrierigeSwedenprice fishing industry iseidstrierige erige erigeSweden 0.00 Source: Eurostat ildeilde Erostt Erostt ilde Erostt DKKildeDKK øre/kWh øre/kWh Erostt 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015 20162016 DKKilde øre/kWh Erostt 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EUEUDKKEU-28 øre/kWh 122.192007 127.612008 135.542009 139.402010 142.282011 144.562012 151.072013 150.442014 146.712015 138.452016 EUDKK øre/kWh 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 BelgiumelgieEUelgie 120.68 139.97 125.49 129.83 140.96 137.94 134.23 135.46 134.13 145.60 elgieEU DenmarkmrelgieEUmr 155.56 162.94 156.03 150.81 165.95 163.48 138.65 140.52 135.14 136.29 mrelgie Germanysldmrelgiesld 150.08 153.68 156.02 162.04 172.44 176.11 190.02 177.30 166.92 164.07 sldmr Greenlandrldsldmrrld msimlrismaximum msimlris price erer erer businesses og og iseidstri iseidstri and fishing rldsld msimlris erer og iseidstri 396.51 442.83 330.09 334.75 359.71 372.01 338.05 347.07 321.28 324.00 industryrldsldrld miimlrismsimlris miimlris erer erer og iseidstri rld miimlrismsimlris erer erer og iseidstri Greenlandrldrld miimlrismsimlrisminimum miimlris price iseidstrierer iseidstrierer businesses og iseidstri 172.45 182.05 173.24 178.61 190.92 184.01 166.94 170.97 158.11 161.00 rld miimlris iseidstrierer Greenlanderigerlderige miimlrisminimum price iseidstrierer fishing industry 56.91 60.08 71.89 74.12 79.23 76.36 69.28 70.95 65.61 66.82 erigerld miimlris iseidstri Swedenerigerld miimlris iseidstri 80.23 96.98 104.81 113.97 116.99 124.82 105.32 100.94 100.59 93.02 erige FigurerigeFigur 8 8 Elpris Elpris inkl. inkl. PSO PSO afgift afgifterer og og moms moms for for forbrugsinterval forbrugsinterval < < 0,02 0,02 GWh GWh FigureFigur 8 8 Elpris The price inkl. ofPSO electricity, afgifter ogincluding moms forPSO forbrugsinterval taxes and VAT, < for 0,02 consumer GWh interval < 0.02 GWh PriserneFigurPriserne 8 Elpris er er vist vist inkl. i iDKK DKK PSO øre øre afgift / /kWh kWher ogi ifaste faste moms priser priser for forbrugsintervalmed med basisår basisår 2016 2016 < 0,02 GWh PricesPriserne are er shown vist i DKK in øre/kWh øre / kWh in fixed i faste prices priser with med baseline basisår year 2016 2016 Priserneildeilde Erostt Erostt er vist iEergistrelse EergistrelseDKK øre / kWh iog ogfaste ege ege priser tilirig tilirig med basisår 2016 Source:ilde Erostt Eurostat, Eergistrelse the Danish Energy og ege Agency tilirig and own adjustments ilde Erostt Eergistrelse og ege tilirig

30 29

e oreslede e miimmsris or iseidstrie el r r il sledes oredre e oreslede e miimmsris or iseidstrie el r r il sledes oredre ee llerede oreslede gse e orreedgtig miimmsris or iseidstrieorold d gr el elrise r r il sledes oredre e llerede gse orreedgtig orold d gr elrise e llerede gse orreedgtig orold d gr elrise

e ogs el edeor or de rede grldse riser til iseidstrie i dlgte er e ogs el edeor or de rede grldse riser til iseidstrie i dlgte er e ogs el edeor or de rede grldse riser til iseidstrie i dlgte er og el or d risere il re med rismodel og el or d risere il re med rismodel og el or d risere il re med rismodel

Tabel 6 Nuværende priser til fiskeindustrien Tabel 6 Nuværende priser til fiskeindustrien NuværendeTabel 6 Nuværende priser tilpriser fiskeindustrien til fiskeindustrien i udvalgte byer (2017 priser) Nuværende priser til fiskeindustrien i udvalgte byer (2017 priser) Nuværende priserorto til fiskeindustrien siil i udvalgte byerortli (2017 priser) Ueri orto siil ortli Ueri orto siil ortli Ueri r r r r r r r r r r r r r r r r r r

Tabel 7 Prismodel 1 priser til fiskeindustrien Tabel 7 Prismodel 1 priser til fiskeindustrien Tabel 7 Prismodel 1 priser til fiskeindustrien ModelTabel 7 1Prismodel priser til fiskeindustrien1 priser til fiskeindustrien i udvalgte byer Model 1 priser til fiskeindustrien i udvalgte byer (PriserneModel 1 priser d. 1 januar til fiskeindustrien 2018, hvis prisreformen i udvalgte byer godkendes) (Priserne d. 1 januar 2018, hvis prisreformen godkendes) (Priserne d. 1 januarorto 2018, hvis prisreformensiil godkendes)ortli Ueri orto siil ortli Ueri r orto r siil r ortli r r Ueri r r r r r r r r r r r r r

The proposed new minimum price of electricity at DKK 0.66 per kWh for the fishing industry will 500.00 EU-28 EU 450.00 EUEU-28 EU therefore improve an already very competitive situation with regard to the price of electricity. EU BelgiumEUelgie 400.00 elgieBelgium elgie elgie Denmarkelgie 350.00 mrelgie mrDenmark mr mr See also table 6 below on existing Greenland prices for the fishing industry in selected towns, and 300.00 Germanysldmr sld sldGermany sld 250.00 sld table 7 on what the prices will be like under pricing model 1. Greenlandrldsld maximummsimlris rldGreenland msimlris maximum priceererrld businesses og msimlris msimlris iseidstri and ererrldprice businesses og msimlris iseidstri and 200.00 fishingrlderer industry ogog msimlris iseidstri iseidstri ererrldfishing og industrymsimlrismiimlris iseidstri rlderer og miimlris iseidstri ererrld og miimlris miimlris iseidstri 150.00 GreenlandererrldGreenland minimummiimlris minimum price businessesrlderer miimlris Table 6 Existing prices for the fishing industry ererrldprice businesses miimlris ererrld miimlris 100.00 iseidstriererrld miimlris Greenlandiseidstrirld minimummiimlris miimlris price rldiseidstriGreenland miimlris minimum Existing prices for the fishing industry in selected fishingiseidstrierigerldiseidstriprice industry fishing miimlris industry iseidstrierige 50.00 erigeiseidstri erige Nuuk Qaqortoq Tasiilaq Nanortalik Qaanaaq Upernavik SwedenerigeSweden 0.00 DKK 0.68/kWh DKK 0.97/kWh DKK 1.42/kWh DKK 1.99/kWh DKK 2.44/kWh DKK 3.25/kWh ilde Erostt ildeilde Erostt DKKilde øre/kWh Erostt 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 DKKDKKilde øre/kWh Erostt 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015 20162016 EUDKK øre/kWh 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Table 7 Pricing model 1 - Prices for the fishing industry EUEUEUDKK-28 øre/kWh 56.26 2007 65.71 2008 65.76 2009 64.20 2010 67.19 2011 67.402012 68.532013 66.962014 63.942015 55.482016 BelgiumelgieEU 51.69 60.51 66.06 58.81 61.53 58.79 50.42 52.48 49.11 42.08 elgieelgieEU Prices for the fishing industry in selected towns Denmarkmrelgie 70.32 73.64 65.57 68.48 67.82 66.94 68.17 61.80 57.23 58.54 mrmrelgie Germanysldmr 68.08 73.10 72.74 71.60 82.73 74.98 80.78 81.64 74.35 59.28 sldsldmr Greenlandrldsld maximummsimlris price erer businesses og iseidstri and rldrldsld msimlris erer erer og og iseidstri iseidstri 396.51 442.83 330.09 334.75 359.71 372.01 338.05 347.07 321.28 324 fishingrld industry miimlrismsimlris erer erer og iseidstri Nuuk Qaqortoq Tasiilaq Nanortalik Qaanaaq Upernavik rldrld miimlrismsimlris erererer erer og iseidstri Greenlandrld minimummiimlris price iseidstrierer businesses 172.45 182.05 173.24 178.61 190.92 184.01 166.94 170.97 158.11 161 rldrld miimlris iseidstriereriseidstri Greenlanderigerld minimummiimlris price iseidstri fishing industry 56.91 60.08 71.89 74.12 79.23 76.36 69.28 70.95 65.61 66.82 DKK 0.66/kWh DKK 0.91/kWh DKK 1.02/kWh DKK 1.60/kWh DKK 1.60/kWh DKK 1.60/kWh erigeerigerld miimlris iseidstri Swedenerige 40.87 49.88 45.33 52.92 46.59 37.16 38.35 34.86 28.20 28.60 Figurerige 8 Elpris inkl. PSO afgifter og moms for forbrugsinterval < 0,02 GWh Figur 98 Elpris inkl. PSO afgifterafgifter ogog momsmoms forfor forbrugsintervalforbrugsinterval 70< 0,02 til 150 GWh GWh Figur 8 Elpris inkl. PSO afgifter og moms for forbrugsinterval < 0,02 GWh 500.00 PriserneFigur 8 Elpris er vist inkl. i DKK PSO øre afgift / kWher ogi faste moms priser for forbrugsintervalmed basisår 2016 < 0,02 GWh EU-28 Priserne er vist i DKK øre / kWh i faste priser med basisår 2016 Priserne er vist i DKK øre / kWh i faste priser med basisår 2016 450.00 Priserneilde Erostt er vist iEergistrelse DKK øre / kWh iog faste ege priser tilirig med basisår 2016 Belgium ilde ildeErostt Erostt Eergistrelse Eergistrelse og ege og tilirigege tilirig 400.00 ilde Erostt Eergistrelse og ege tilirig Denmark 350.00 Source: Source: Eurostat, the Danish Energy Agency and own adjustments 300.00 Germany 250.00 Greenland maximum 4.5.5.3 Sammenligning med internationale priser på vand price businesses and 200.00 fishing industry om4.5.5.3 t Comparison il e imlemeterig with international rismodel prices ofetde water t der or d idres e esris or Greenland minimum price 150.00 businesses Greenland minimum price Asd mentioned above,rm implementation of pricing model 1 will entail the introduction of a uniform fishing industry 100.00 water price at DKK 19.00/m3. 50.00 Sweden

0.00 iseidstries driser dgr de lole eedsomostiger dog st Themsimlrise fishing industry's og m wateriimm prices constitute miimm 41.5% rise of the og local gier unit sledes costs, ehowever miimmsris no more than r Source: Eurostat r m og msimmris r r m rise or det rige erer og ritder e the maximum price and no less than 41.5% of the minimum price, which means a minimum price EU-28 122.19 127.61 135.54 139.40 142.28 144.56 151.07 150.44 146.71 138.45 el og el or eoldsis de rede og model riser til iseidstrie i dlgte Belgium 120.68 139.97 125.49 129.83 140.96 137.94 134.23 135.46 134.13 145.60 of DKK 7.89 per m3 and a maximum price of DKK 19 per m3 (the price for other businesses and Denmark 155.56 162.94 156.03 150.81 165.95 163.48 138.65 140.52 135.14 136.29 Germany 150.08 153.68 156.02 162.04 172.44 176.11 190.02 177.30 166.92 164.07 privateer customers). See tables 8 and 9, respectively, for the existing prices and model-1 prices for Greenland maximum price businesses and fishing 396.51 442.83 330.09 334.75 359.71 372.01 338.05 347.07 321.28 324.00 industry the fishing industry in selected towns. Greenland minimum price businesses 172.45 182.05 173.24 178.61 190.92 184.01 166.94 170.97 158.11 161.00 Greenland minimum price fishing industry 56.91 60.08 71.89 74.12 79.23 76.36 69.28 70.95 65.61 66.82 Tabel 8 Nuværende vandpriser til fiskeindustrien Sweden 80.23 96.98 104.81 113.97 116.99 124.82 105.32 100.94 100.59 93.02 TableNuværende 8 Existing vandpriser water prices til fiskeindustrien for the fishing iindustry udvalgte byer (2017 priser) Figure 8 The price of electricity, including PSO taxes and VAT, for consumer interval < 0.02 GWh Existing water pricesorto for the fishingsiil industry in selectedortli towns (2017 prices) Ueri Prices are shown in øre/kWh in fixed prices with baseline year 2016 Source: Eurostat, the Danish Energy Agency and own adjustments Nuuk rm Qaqortoq rm Tasiilaq r m Nanortalik rm Qaanaaq r m Upernavik rm

DKK 10.60/m3 DKK 19.81/m3 DKK 25.66/m3 DKK 30.57/m3 DKK 33.40/m3 DKK 33.40/m3 Tabel 9 Model 1 vandpriser til fiskeindustrien TableModel 9 Model1 vandpriser-1 water til prices fiskeindustrien for the fishing(Priserne industry d. 1 januar 2018, hvis prisreformen godkendes) orto siil ortli Ueri rm rm rm rm rm rm Nuuk Qaqortoq Tasiilaq Nanortalik Qaanaaq Upernavik DKK 9.29/m3 DKK 19.00/m3 DKK 19.00/m3 DKK 19.00/m3 DKK 19.00/m3 DKK 19.00/m3

30 29 30 31 Due to the many different pricing structures in place in Europe, it is difficult to achieve a good and heterogeneous measurement of the water price.

In its publication "Environment at a Glance 2015 - OECD Indicators", the OECD presents a comparison of the water prices in a large number of cities and countries throughout the world. The OECD comparison is based on the International Water Association's "International Statistics For Water Services 2014" (www.iwa-network.org).

In its analysis, the OECD points to the fact that uniform water prices and tariff structures are only being applied to a limited extent. Variation in water prices and tariff structures within individual countries and between different consumer groups makes it difficult to calculate meaningful national average prices for water. According to the OECD, in a number of countries, the water prices are moreover increasingly being influenced by fiscal taxes, VAT, treatment charges, etc., which further complicates comparisons. Similarly, the OECD also notes that there is only limited data available on prices for industry and agriculture.

The prices that the OECD compares refer the tariffs for water supply to private households and small businesses in selected towns and cities. Prices are 2013 prices that have been converted from the local currency into USD using the exchange rate as at 31 December 2013. Table 10 below regarding water prices in different cities and countries also uses an exchange rate at 31 December 2013 to convert from USD to DKK.

As can be seen from table 10, a water price of DKK 19 per m3 will be competitive compared with the water prices that, according to the OECD, private consumers and small businesses have to pay in a number of towns/cities and countries across the world. However, there are several countries in which the consumers mentioned pay a lower price.

The new minimum price of DKK 7.89 per m3 for the fishing industry is competitive compared with the tariffs for the customer group examined in most of the towns/cities and countries. Table 10 Water prices in large towns/cities Country Town DKK/m3 Country Town DKK/m3 Austria Graz 25.27 Japan Nagoya 9.21 Innsbruck 27.58 Osaka 8.41 Linz 17.5 Hiroshima 10.49 Salzburg 33.86 Fukuoka 12.36 Vienna 28.64 Sapporo 12.49 Belgium Louvain 30.41 Sendai 15.35 Antwerp 23.65 Tokyo 12.01 Brussels 27.27 Yokohama 11.16 Liège 34.36 Mexico San Luis Potosi 23.44 Kortrijk 30.96 Guadalajara 4.81 Genk 28.16 León, Guanajuato 26.84 Canada Calgary 21.91 Puebla 47.48 Winnipeg 20.73 Netherlands Amsterdam 24.93

32 31 Due to the many different pricing structures in place in Europe, it is difficult to achieve a good and Regina 24.89 Rotterdam 25.95 Richmond 27.76 The Haag 27.53 heterogeneous measurement of the water price. Durham 18 Utrecht 23.6 Denmark Aalborg 52.23 Eindhoven 18.46 Aarhus 53.99 Maastricht 22.91 In its publication "Environment at a Glance 2015 - OECD Indicators", the OECD presents a 42.04 Norway Bergen 22.19 comparison of the water prices in a large number of cities and countries throughout the world. Esbjerg 46.93 Oslo 23.81 Odense 51.64 Trondheim 27.54 The OECD comparison is based on the International Water Association's "International Statistics Finland Espoo 25.5 Poland Bydgoszcz 20.06 For Water Services 2014" (www.iwa-network.org). Helsinki 25.5 Wroclaw 15.26 Oulu 28.71 Radom 15.17 Tampere 29.2 Tarnow 15.75 In its analysis, the OECD points to the fact that uniform water prices and tariff structures are only Turku 35.18 Portugal Lisbon 14.15 being applied to a limited extent. Variation in water prices and tariff structures within individual Vantaa 25.5 Porto 13.17 France Bordeaux 24.39 Braga 13.11 countries and between different consumer groups makes it difficult to calculate meaningful Lille 27.72 Coimbra 14.82 national average prices for water. According to the OECD, in a number of countries, the water Paris 22.91 Spain Barcelona 18.75 Strasbourg 23.07 Bilbao 11.88 prices are moreover increasingly being influenced by fiscal taxes, VAT, treatment charges, etc., Reims 23.82 Madrid 11.96 which further complicates comparisons. Similarly, the OECD also notes that there is only limited Nancy 22.87 Seville 16.48 Le Havre 32.12 Valencia 14.82 data available on prices for industry and agriculture. Marseille 26.17 Sweden Stockholm 13.89 Brest 33.91 Gothenburg 25.31 Hungary Budapest 17.69 Malmö 17.74 The prices that the OECD compares refer the tariffs for water supply to private households and Debrecen 13.36 Uppsala 25.1 small businesses in selected towns and cities. Prices are 2013 prices that have been converted Miskolc 14.25 Linköping 25.55 Pécs 19.18 Switzerland Geneva 24.9 from the local currency into USD using the exchange rate as at 31 December 2013. Table 10 below Kaposvár 11.32 Zürich 25.62 regarding water prices in different cities and countries also uses an exchange rate at 31 December Israel Jerusalem 15.21 Lausanne 24.03 Italy Bologna 13.21 Basel 25.2 2013 to convert from USD to DKK. Milan 4.59 Bern 34.25 England and Naples 9.8 Birmingham 27.64 Wales As can be seen from table 10, a water price of DKK 19 per m3 will be competitive compared with Rome 9.8 Cardiff 32.23 the water prices that, according to the OECD, private consumers and small businesses have to pay Turin 12.4 London 21.95 Korea Seoul 2.95 Manchester 31.82 in a number of towns/cities and countries across the world. However, there are several countries Daegu 3.03 USA New York 21.71 in which the consumers mentioned pay a lower price. Incheon 3.35 Washington D.C. 23.04 Gwangju 2.74 Los Angeles 14.97 Daejeon 2.68 Chicago 8.05 The new minimum price of DKK 7.89 per m3 for the fishing industry is competitive compared with Gyeounggi 3.26 Miami 5.55 the tariffs for the customer group examined in most of the towns/cities and countries. Source: International Water Association (2014) Table 10 Water prices in large towns/cities Country Town DKK/m3 Country Town DKK/m3 Austria Graz 25.27 Japan Nagoya 9.21 Innsbruck 27.58 Osaka 8.41 Linz 17.5 Hiroshima 10.49 Salzburg 33.86 Fukuoka 12.36 Vienna 28.64 Sapporo 12.49 Belgium Louvain 30.41 Sendai 15.35 Antwerp 23.65 Tokyo 12.01 Brussels 27.27 Yokohama 11.16 Liège 34.36 Mexico San Luis Potosi 23.44 Kortrijk 30.96 Guadalajara 4.81 Genk 28.16 León, Guanajuato 26.84 Canada Calgary 21.91 Puebla 47.48 Winnipeg 20.73 Netherlands Amsterdam 24.93

32 31 32 33 4.5.6 Neutral financing of the price reform with regard to operating costs, capital costs and lending The price system will entail a reform of the economic relationship between the Greenland Treasury and Nukissiorfiit. In accordance with section 2 of the Greenland Budget Act, the model will be self-financing within the framework of budget operating costs, capital costs and lending (DAU budget).

Financing of the price reduction for citizens will include an annual reduction in Nukissiorfiit's loan funding of DKK 80 million - and a corresponding annual reduction in Nukissiorfiit's loan repayments of DKK 70 million, as well as an annual adjustment of the interest rate, which is 6% per year for loans raised in 2016. The interest rate will be adjusted downwards annually by 0.22% until it reaches 3%, so that total interest payment does not become higher than necessary as a consequence of Nukissiorfiit's loans being repaid over a longer period.

The loan funding for Nukissiorfiit amounts to DKK 140 million and includes DKK 110 million for reinvestments etc. in plants and facilities in Nukissiorfiit's existing supply areas, as well as DKK 30 million for site development activities.

As a result of an extensive rationalisation of the way Nukissiorfiit is operated, and not least as a result of extensive investments in renewable energy sources/hydropower, the need for allocation of capital funding for ordinary reinvestments has been reduced significantly.

Nukissiorfiit will be able to meet the reinvestment need partly within the reduced capital-loan funding, and partly through own-financing due to a positive cash flow. Nukissiorfiit's ordinary (re)investment programme will therefore not be affected by the change in loan funding. Extraordinary investments to expand the existing activity level will continue to be financed through separate (loan) funding for capital activities. This includes major investments in new hydropower plants, takeover of heating plants/boilers throughout Greenland, etc.

Other sources of financing include the establishment of service-contract payments to, and increased dividend payments from, publicly owned businesses corresponding to the spending these businesses save on their electricity and heating bills due to the price reform. Similarly, public authorities' spending appropriation will be reduced corresponding to what these authorities save on their electricity and water bills due to the price reform. Furthermore, the tax effect will also be included in the financing basis. Therefore the results of the price reform will only accrue to citizens and the business community.

The DAU-neutral (operating costs, capital costs and lending) and DA-neutral (operating costs and capital costs) financing of pricing model 1 is illustrated in the table below:

34 33 4.5.6 Neutral financing of the price reform with regard to operating costs, capital Table 11 DAU/DA overview, pricing model 1 costs and lending The price system will entail a reform of the economic relationship between the Greenland Treasury and Nukissiorfiit. In accordance with section 2 of the Greenland Budget Act, the model will be self-financing within the framework of budget operating costs, capital costs and lending 89.71.40 Nukissiorfiit, reduced capital loans (U) 80,000,000 (DAU budget). 64.12.05 Nukissiorfiit, reduced repayments (I/U) 70,000,000 Financing of the price reduction for citizens will include an annual reduction in Nukissiorfiit's loan Savings for Greenland Self-Government and the funding of DKK 80 million - and a corresponding annual reduction in Nukissiorfiit's loan municipalities2 as well as public institutions and 61,002,484 3 repayments of DKK 70 million, as well as an annual adjustment of the interest rate, which is 6% Self-Government-owned businesses per year for loans raised in 2016. The interest rate will be adjusted downwards annually by 0.22% Corporation tax benefit etc. 9,689,573 until it reaches 3%, so that total interest payment does not become higher than necessary as a consequence of Nukissiorfiit's loans being repaid over a longer period. 64.12.02 Nukissiorfiit 69,053,064

The loan funding for Nukissiorfiit amounts to DKK 140 million and includes DKK 110 million for Impact on operating costs, capital costs and lending reinvestments etc. in plants and facilities in Nukissiorfiit's existing supply areas, as well as DKK 30 11,638,992 (DAU) million for site development activities. Impact on operating costs and capital costs (DA) 1,638,992

As a result of an extensive rationalisation of the way Nukissiorfiit is operated, and not least as a result of extensive investments in renewable energy sources/hydropower, the need for allocation of capital funding for ordinary reinvestments has been reduced significantly. The term for loans taken out from 2016 will be 20 years at a nominal interest rate of 3% per Nukissiorfiit will be able to meet the reinvestment need partly within the reduced capital-loan year. Loans taken out before 2016 have been consolidated into one loan. Due to the uniform funding, and partly through own-financing due to a positive cash flow. Nukissiorfiit's ordinary price reform, total repayment will be reduced by DKK 70 million per year, and the repayment (re)investment programme will therefore not be affected by the change in loan funding. profile for loans taken out before 2016 will similarly be extended. To compensate for the Extraordinary investments to expand the existing activity level will continue to be financed extended repayment profile, a declining interest rate will be set for loans taken out before through separate (loan) funding for capital activities. This includes major investments in new 2016. The interest rate will be set so that it balances the effect on interest payments of an hydropower plants, takeover of heating plants/boilers throughout Greenland, etc. extended repayment profile and the effect on interest payments of a lower interest rate.

Other sources of financing include the establishment of service-contract payments to, and The interest rate for loans taken out before 2016 was originally set at a nominal interest rate of increased dividend payments from, publicly owned businesses corresponding to the spending 6% per year. In the consolidated loan from before 2016, the interest rate will be gradually these businesses save on their electricity and heating bills due to the price reform. Similarly, public reduced by 0.22 percentage points annually until the annual nominal interest rate amounts to authorities' spending appropriation will be reduced corresponding to what these authorities save 3% per year, after which it will be maintained at this level. on their electricity and water bills due to the price reform. Furthermore, the tax effect will also be included in the financing basis. Therefore the results of the price reform will only accrue to citizens and the business community.

The DAU-neutral (operating costs, capital costs and lending) and DA-neutral (operating costs and 2 Does not include public housing companies' savings. capital costs) financing of pricing model 1 is illustrated in the table below: 3 Covers publicly owned businesses that are not in direct competition with private players. Thus, Royal Greenland is not covered by the requirement for a reduced service contract/increased dividend payment.

34 33 34 35 4.5.7 Summary concerning recommended pricing model 1 As described above, a price reform for electricity and water can be implemented that will provide significant savings for all customer groups.

The reduced tariffs for energy and water will, as described, lead to significant welfare benefits for the individual family. Furthermore, businesses will experience a reduction in their costs for electricity and water. The price reform will provide general savings for all businesses and an additional reduction in costs for the fishing industry.

The introduction of the new prices will lead to a situation in which private customers and businesses alike will experience a cost level that is more in line with the cost level in other countries. This is deemed to provide an important supplement to the comprehensive business and economic growth reforms that Naalakkersuisut has implemented in recent years, and which include extensive modernisation of business regulations, a major reform of the labour market, as well as an important improvement in the framework conditions for businesses within tourism, business promotion, ice and water, and more.

The reform will be financed through restructuring of the existing Self-Government funding structure in the energy area. Consequently, Nukissiorfiit's loan funding for construction/capital activities will be reduced (providing savings for the Treasury) and Nukissiorfiit's annual repayments to the Treasury will be reduced correspondingly, and considerably, (reducing revenues for the Treasury).

Furthermore, the reform will entail an increase in annual operating subsidies to Nukissiorfiit during a transition period (increased expenditure for the Treasury).

These increased operating subsidies will be offset by a similar reduction in other operating subsidies, etc.: i.e. reduced service-contract payments to different Self-Government-owned companies/increased dividend payments corresponding to the savings these companies have on their electricity and water bills; as well as reductions in funding for public authorities corresponding to the achieved savings (increased revenues for the Treasury).

The ultimate goal is that Greenland Treasury subsidies to Nukissiorfiit be phased out entirely over a number of years. This will primarily be through significant modernisation of the publicly owned energy and water supply, the purpose of which is to considerably reduce the unit costs in these areas.

As described elsewhere in this sector plan, this modernisation will consist partly of targeted optimisation and technological updates of current facilities, and partly of targeted investments in new energy sources.

36 35 4.5.7 Summary concerning recommended pricing model 1 Nukissiorfiit will test several different renewable energy sources in the near future. This testing As described above, a price reform for electricity and water can be implemented that will provide will include in particular wind measurements carried out in areas where existing energy supply significant savings for all customer groups. facilities are in need of renewal within a foreseeable future. Furthermore, there will be specific appraisals of the possibilities of using solar energy, hydrogen, geothermal energy, etc. The reduced tariffs for energy and water will, as described, lead to significant welfare benefits for the individual family. Furthermore, businesses will experience a reduction in their costs for Moreover, it will be examined whether, initially, there is a basis for connecting Nuuk, Maniitsoq electricity and water. The price reform will provide general savings for all businesses and an and Sisimiut in a common transmission grid that will allow for exploitation of the very significant additional reduction in costs for the fishing industry. hydropower potentials in this region. If implemented, such a solution will lead to lower unit costs, but it will require that enough energy can be sold to both new industry and private customers. The introduction of the new prices will lead to a situation in which private customers and businesses alike will experience a cost level that is more in line with the cost level in other 4.5.8 Alternative pricing models countries. This is deemed to provide an important supplement to the comprehensive business and In addition to model 1, which has been described above, Naalakkersuisut has analysed five economic growth reforms that Naalakkersuisut has implemented in recent years, and which alternative pricing models. The models and how they will affect Nukissiorfiit, different customer include extensive modernisation of business regulations, a major reform of the labour market, as groups, the Greenland Treasury and individual families in Greenland are outlined in Annex 2. The well as an important improvement in the framework conditions for businesses within tourism, models outlined in Appendix 2 are: business promotion, ice and water, and more.

Model 2 Uniform price The reform will be financed through restructuring of the existing Self-Government funding Electricity 1.60 structure in the energy area. Consequently, Nukissiorfiit's loan funding for construction/capital Water 19 activities will be reduced (providing savings for the Treasury) and Nukissiorfiit's annual repayments Industry tariff 100% of the local unit cost to the Treasury will be reduced correspondingly, and considerably, (reducing revenues for the Treasury). Model 3 Solidarity (min/max) Electricity 1.60/2.07 Furthermore, the reform will entail an increase in annual operating subsidies to Nukissiorfiit Water 19/22 Industry tariff Minimum of 41.5% of the local unit cost during a transition period (increased expenditure for the Treasury).

Model 4 Solidarity (min/max) These increased operating subsidies will be offset by a similar reduction in other operating Electricity 1.60/2.07 subsidies, etc.: i.e. reduced service-contract payments to different Self-Government-owned Water 19/22 companies/increased dividend payments corresponding to the savings these companies have on Industry tariff 100% of the local unit cost their electricity and water bills; as well as reductions in funding for public authorities corresponding to the achieved savings (increased revenues for the Treasury). Model 5 Uniform price Electricity 1.80 The ultimate goal is that Greenland Treasury subsidies to Nukissiorfiit be phased out entirely over Water 20 a number of years. This will primarily be through significant modernisation of the publicly owned Industry tariff Minimum of 41.5% of the local unit cost energy and water supply, the purpose of which is to considerably reduce the unit costs in these Model 6 Uniform price areas. Electricity 1.80

Water 20 As described elsewhere in this sector plan, this modernisation will consist partly of targeted Industry tariff 100% of the local unit cost optimisation and technological updates of current facilities, and partly of targeted investments in new energy sources.

36 35 36 37 Model 7 Uniform price Electricity 2.30 Water 26 Industry tariff 41.5% of the local unit cost

Model 8 Uniform price Electricity 2.03 Water 24 Industry tariff 100% of the local unit cost

38 37 Model 7 Uniform price Electricity 2.30 Water 26 SECTION III: Industry tariff 41.5% of the local unit cost

Model 8 Uniform price Electricity 2.03 STRATEGY OBJECTIVES CONCERNING Water 24 Industry tariff 100% of the local unit cost RENEWABLE ENERGY AND MODERNISATION OF THE ENERGY AND THE WATER SECTORS

38 37 38 39 5. Modernisering af Energisektoren

5.1. Energiforbruget i dag og frem mod 2030 det lgede esries eergiorrget til el og rme som det ser d i dg og som det oretes t dile sig rem mod Eergiorrget oretes t stige me der il re etdelige geogrise orselle ilet r etdig or de remtidige iesteriger eergiomrdet

esrielsere stts remsriigere orrg og e teologise mligeder der rmme or de mlstiger or el rme og dorsige der ststtes i setorle

5.2. Energiforbruget og andelen af vedvarende energi or t gie et telt illede eergisetore gies i det lgede et oerli oer eergiorrget orrget ossile rdsler og edrede eergiilder og rodtiositete de eelte loliteter

et smlede eergiorrg til el og rme r i de seeste r ret ogelde stilt om det ses igr r eergiorrget i ligget ogelde ie med eergiorrget i 1990’erne. Det e eergiorrg i og sldes rstotiiteter

Eergiildere der ettes r imidlertid dret sig or der tidligere delede le edt imorterede ossile rdsler dgr drt e etdelig del eergiorsige dele edrede eergi r ret stigede idledigsis med idritsttelse seordsret i seere med de oertie idritsttelse derligere ire drtrer er ettes desde rme r ldsorrdigslg og restrme r dieselseret elrodtio til errme 5. Modernisation of the energy sector 9.000 6.000.000 5.1. Energy consumption today and up to 2030 8.000 5.000.000 The following describes the demand for energy for electricity and heating as it is today and as it is 7.000 expected to develop up to 2030. Energy consumption is expected to increase in Greenland, but 6.000 4.000.000 5.000 with significant geographical differences, which will have significance for future investments in the 3.000.000 4.000 energy area. 3.000 2.000.000 2.000 1.000.000 The objectives for the supply of electricity, heating and water set out in this sector plan are based 1.000 0 0 on descriptions of current status, projections of demand, and new technological possibilities. 1990 1994 1998 2002 2006 2010 2014 Figur 10 Endeligt energiforbrug til el og varme Figur 11 Samlet energiforbrug til el og 5.2. Energy consumption and renewable energy share 4 fordelt på energikilder 1990-2015 (TJ) varme i byer og bygder i 2015 (GJ) To provide a snapshot of the current status of the energy sector in Greenland, the following sections present an outline of energy consumption, fossil-fuel consumption, renewable energy consumption and production capacity at the individual localities. grelsere eergiorrget omtter el og rme ds t esemelis trsort og iserisetore ie er ilderet ilde rlds ttisti In recent years, total energy consumption for electricity and heating has been more or less constant. Figure 10 shows that energy consumption in 2012-2015 was more or less at the same level as energy consumption in the 1990s. The high energy consumption in 2010 and 2011 was due to mineral resources activities.

However, there has been a change in the energy sources used. Whereas, previously, imported fossil fuels made up the sole basis for energy services, today hydropower constitutes a significant part the energy supply. The share of renewable energy has been increasing, first with commissioning of the Buksefjord Hydroelectric Power Plant in 1993 and then, at a later stage, with commissioning of four more hydropower plants. Furthermore, heat from waste incineration plants and residual heat from diesel-based electricity production are used for district heating.

40 39 5. Modernisering af Energisektoren

5.1. Energiforbruget i dag og frem mod 2030 det lgede esries eergiorrget til el og rme som det ser d i dg og som det oretes t dile sig rem mod Eergiorrget oretes t stige me der il re etdelige geogrise orselle ilet r etdig or de remtidige iesteriger eergiomrdet

esrielsere stts remsriigere orrg og e teologise mligeder der rmme or de mlstiger or el rme og dorsige der ststtes i setorle

5.2. Energiforbruget og andelen af vedvarende energi or t gie et telt illede eergisetore gies i det lgede et oerli oer eergiorrget orrget ossile rdsler og edrede eergiilder og rodtiositete de eelte loliteter

et smlede eergiorrg til el og rme r i de seeste r ret ogelde stilt om det ses igr r eergiorrget i ligget ogelde ie med eergiorrget i 1990’erne. Det e eergiorrg i og sldes rstotiiteter

Eergiildere der ettes r imidlertid dret sig or der tidligere delede le edt imorterede ossile rdsler dgr drt e etdelig del eergiorsige dele edrede eergi r ret stigede idledigsis med idritsttelse seordsret i seere med de oertie idritsttelse derligere ire drtrer er ettes desde rme r ldsorrdigslg og restrme r dieselseret elrodtio til errme 5. Modernisation of the energy sector TJ GJ 9.000 6.000.000 Fossil fuels 9,000 Hydropower Waste heat Residual Fossil fuels 5.1. Energy consumption today and up to 2030 8.000 6,000,000 Residual heat Hydropowe Waste heat Residual Fossil fuels 5.000.000 Fossil fuels

The following describes the demand for energy for electricity and heating as it is today and as it is 7.0008,000 r heat HydropowerResidual heat 5,000,000 7,000 WasteHydropower heat 6.000 4.000.000 expected to develop up to 2030. Energy consumption is expected to increase in Greenland, but Waste heat 5.0006,000 4,000,000 with significant geographical differences, which will have significance for future investments in the 3.000.000 4.0005,000 3,000,000 energy area. 3.0004,000 2.000.000 2.0003,000 2,000,000 1.000.000 1.0002,000 The objectives for the supply of electricity, heating and water set out in this sector plan are based 1,000,000 on descriptions of current status, projections of demand, and new technological possibilities. 1,0000 0 01990 1994 1998 2002 2006 2010 2014 0 Towns Villages Figur 10 Endeligt energiforbrug til el og varme Figur 11 SamletTowns energiforbrug Villages til el og 5.2. Energy consumption and renewable energy share 4 fordeltFigure på 10 energikilder Final energy 1990 consumption-2015 (TJ) for electricity and varmeFigure i byer11 Total og bygder energy i 2015 consumption (GJ) for To provide a snapshot of the current status of the energy sector in Greenland, the following heating by energy sources 1990-2015 (TJ)4 electricity and heating in towns and villages in 2015 (GJ) sections present an outline of energy consumption, fossil-fuel consumption, renewable energy consumption and production capacity at the individual localities. It is often said that Greenland's energy supply is very green. This is correct in that Nukissiorfiit grelsere eergiorrget omtter el og rme ds t esemelis trsort og iserisetore ie er ilderetsupplies ildeelectricity rlds and ttisti heating that is based primarily on renewable energy. Nukissiorfiit's In recent years, total energy consumption for electricity and heating has been more or less provision of electricity and heating is referred to as 'public energy services'.5 However, a constant. Figure 10 shows that energy consumption in 2012-2015 was more or less at the same considerable part of the energy consumed in Greenland is produced privately. This applies in level as energy consumption in the 1990s. The high energy consumption in 2010 and 2011 was particular to heating, as many private households get their heating from oil-fired installations. due to mineral resources activities. Fossil fuels are much more prominent than public energy services in Greenland’s total energy consumption, see figure 10. Currently, electricity production in villages is based almost exclusively However, there has been a change in the energy sources used. Whereas, previously, imported on fossil fuels, see figure 11. fossil fuels made up the sole basis for energy services, today hydropower constitutes a significant part the energy supply. The share of renewable energy has been increasing, first with Figures 12 and 13 (below) show the difference in use of energy sources in Nukissiorfiit’s public commissioning of the Buksefjord Hydroelectric Power Plant in 1993 and then, at a later stage, with energy services and Greenland's total electricity and heating supply, respectively. In 2015, commissioning of four more hydropower plants. Furthermore, heat from waste incineration plants renewable energy (hydropower and waste heat) constituted 67% of Nukissiorfiit’s sales, but only and residual heat from diesel-based electricity production are used for district heating. 22% of the total energy consumption in Greenland.

The residual heat marked in the figures stems from electricity production by Nukissiorfiit, where the residual heat coming from diesel engines in the form of exhaust gases and cooling water can be exploited as district heating. Thus, the residual heat is based on fossil fuels, but will often be suitable to use as a by-product from electricity production. Otherwise, there would be a need to exploit more fossil fuels for heat production.

4 Statements of the energy consumption only cover electricity and heating. This means that the transport sector and the fishing sector are not included, for example. Source: Statistics Greenland.

5 Public energy services also comprise Mittarfeqarfiit’s supply of energy to Kangerlussuaq, Narsarsuaq and the airports in and . However, Statistics Greenland has no data on energy supply from Mittarfeqarfiit itself, and this energy is therefore not included in the statements. 40 39 40 41

DerDer te te te te t t rnn rnn enerrnn enerrnn er er eet eet rn. rn. Det Det er er rret rret t t en en e e re re erer eere eere rt rt ereene ereene ere ere erene erene ener. ener. rt rt eern eern e e re re e e en en ente ente enerrnn. enerrnn. n n tr tr e e net net enerrr enerrr er er ert ert rtrt rnn. rnn. Det Det er er rt rt r r rnn rnn r r er er ne ne e e entte entte er. er. rnnrnn eeee enerrrenerrr erer ee ee rnerrner eeee etetetet ereere ennetennet e e en en e entente enerrnn enerrnn . . r r 10 10. . erne erne nene nene nrene nrene tntnt ntent nten eene eene e e rner rner t t rtn rtn e e . . r r 11 11. .

rr 1 1 r r 1 1 neenr neenr er er reen reen neneen neneen enerer enerer en en rtrt ente ente enerrnn enerrnn rnn rnn ee ee e e rernn. rernn. 01 01 rere erene erene ener ener nrt nrt re re t. t. rt rt tnn tnn en en nn t. t. net net ee ee enerrr. enerrr.

DenDen restvarme, restvarme, der der er er markeret markeret i ifigurerne, figurerne, stammer stammer fra fra Nukissiorfiit’s Nukissiorfiit’s elproduktion, elproduktion, hvor hvor eetrerneeetrerne retr retre e r r tnn tnn en en n n entte entte ernre. ernre. etrenetren er er ee ee eret eret e e rner rner en en te te re re ent ent t t ntte ntte et et rt rt r r ertnen. ertnen. terntt terntt e e er er re re e e r r t t entte entte ere ere ee rnerrner t t rertn. rertn.

Fossile FossileFossil fuels VandkraftVandkraft brændsler Hydropower brændsler25.0% 21,0%21,0% 25,0%25,0% 21.0%

AffaldsvarmeWasteAffaldsvarme heat 1.4%1,4%1,4% RestvarmeResidualRestvarme heat2,3% 2.3%2,3% RestvarmeRestvarmeResidual 8,0%heat8,0% 8.0% VandkraftHydropowerVandkraft 62,3%62.3%62,3% AffaldsWasteAffalds- heat- 4.8% varmevarme FossilFossileFossile fuels 4,8%4,8% brændslerbrændsler75.3% 75,3%75,3%

6 FigurFigurFigure 12 12 Offentlig 12 Offentlig Public energiforsyning: energy energiforsyning: supply: FigurFigureFigur 13 13 Privat PrivatePrivat og og and offentligt offentligt public energiforbrug:energy energiforbrug: 6 6 NukissiorfiitsNukissiorfiitsNukissiorfiit’s afsætning afsætning sales of afelectricity af el el og og varme varme and heat Samletconsumption:Samlet energiforbrug energiforbrug Total energy til til el el og consumptionog varme varme for broken down by energy source, 2015 electricity and heat broken down by energy fordeltfordelt på på energikilder, energikilder, 2015 2015 fordeltfordelt på på energikilder, energikilder, 2015 2015 source, 2015

DetDetPolitically, er er the r r goalt t established e e er er tet for tet Nukissiorfiit’s r r rt rt use of r renewabler erene erene energy is ener that,ener as er farer t ast ener possible,ener r r eeenergyrenerene from ener enerrenewableerer energy et et sources n n should cover e e total net netenergy ee eeconsumption enerrr enerrr in Greenland 00. 00. in 23

DenThis Den ente entesector planenerrnn enerrnn not only tterconcerns tter Nukissiorfiit’s ttrert ttrert attainment rnn rnn t oft ner nerthis 100% target; rr rr it als o tnendeals tnen with rt. rt. rn rnnn ttt ttt r r ert ert e e t t r r ttrert ttrert rnn rnn rr rr ette ette enerrrenerrrways to increase e e nr nr self reerne. sufficiencyreerne. in energy supply as a whole hus, there is also focus on how reerneheating reerne with enerrretprivately enerrret owned tter tter oilfired n n einstallations e re re . .can trnrt trnrt be replaced eretren eretren by district .e. heating.e. e e eror er electric neret.neret.heating ebased e rnn rnnon renewable ttt. ttt. energy when appropriate seen from a socioeconomic perspective

11 able 12 lists various renewable energy targets in comparison with each other Note that the share

of renewable energy varies depending on which part of the energy supply the calculation is based on Table 12. Comparison of targets for renewable energy Public electricity supply lectricity from public grids ouseholds, businesses 2 (Nukissiorfiit sales) Public electricity and heat supply lectricity and heat, from ouseholds, businesses (Nukissiorfiit sales) public grids otal energy supply, ecl lectricity and heat, from transport (private and public both private installations ouseholds, businesses 22 supply) and public grids otal energy consumption, incl lectricity, heat and land ouseholds, businesses, road 211

he calculations of the energy consumption only cover electricity and heating, ie the transport and fisheries sectors are not included, for eample ource tatistics Greenland

Businesses’ own production of electricity and heat is not included. n this contet, private installations primarily refer to privately owned oilfired installations because there is no complete data on private installations based on solar energy or wind power etc 42 1 landbased transport based transport transport Fossil fuels Hydropower lectricity, heat and all 25.0% Total energy consumption, incl. ouseholds, businesses, entire 21.0% transport aircraft, ships, 1.% all transport transport sector cars etc.

Waste heat 1.4% Residual heat 2.3% 5.3. Current supply capacity at individual localities Residual nergy supply in reenland is characterised by islandmode operation, which means that heat 8.0% Hydropower 62.3% indiidual towns and illages are not connected through a common supply network. Therefore, Waste heat 4.8% Fossil fuels each locality has at least one electricitygenerating installation with associated backup 75.3% installations. The possibilities to epand electricity production ary from installation to installation and from place to place. slandmode operation reduces the fleibility of electricity supply. or Figure 12 Public energy supply: Figure 13 Private and public energy 6 eample, uickly epanding production capacity as reuired, e.g. because new businesses are Nukissiorfiit’s sales of electricity and heat consumption: Total energy consumption for broken down by energy source, 2015 electricity and heat broken down by energy established in an area, may be a challenge. The restrictions associated with supply based on source, 2015 islandmode operation make planning etremely important. This applies in the short term, with ongoing coordination between Nukissiorfiit and businesses, particularly in the fishing industry,

Politically, the goal established for Nukissiorfiit’s use of renewable energy is that, as far as possible, regarding epected energy needs and energy production, as well as in the long term, with energy from renewable energy sources should cover total energy consumption in Greenland in inestment decisions for energy supply made on the basis of realistic epectations for future 23 deelopments of energy consumption at specific locations.

This sector plan not only concerns Nukissiorfiit’s attainment of this 100% target; it also deals with The figure below shows the current end of 01 capacity at electricitygenerating installations ways to increase selfsufficiency in energy supply as a whole hus, there is also focus on how for settlements with supply from Nukissiorfiit. The capacity status is indicated by a red, yellow or heating with privately owned oilfired installations can be replaced by district heating or electric green marking heating based on renewable energy when appropriate seen from a socioeconomic perspective

able 12 lists various renewable energy targets in comparison with each other Note that the share of renewable energy varies depending on which part of the energy supply the calculation is based on Table 12. Comparison of targets for renewable energy Public electricity supply lectricity from public grids ouseholds, businesses 2 (Nukissiorfiit sales) Public electricity and heat supply lectricity and heat, from ouseholds, businesses (Nukissiorfiit sales) public grids otal energy supply, ecl lectricity and heat, from transport (private and public both private installations ouseholds, businesses 22 supply) and public grids otal energy consumption, incl lectricity, heat and land ouseholds, businesses, road 211

he calculations of the energy consumption only cover electricity and heating, ie the transport and fisheries sectors are not included, for eample ource tatistics Greenland

Businesses’ own production of electricity and heat is not included. The only eception is the towns aorto and Narsa, both of which are supplied with energy from the n this contet, private installations primarily refer to privately owned oilfired installations because there is no orlortorsua ydropower lant. complete data on private installations based on solar energy or wind power etc 42 1 43 5.5. Energiforbrugets udvikling frem mod 2030 or at f et illede af, hvordan ehovet for el og varme vil udvikle sig over de kommende r, er der udaredet en overordnet fremskrivning af energiforruget remskrivningen viser, at erhvervsvirksomhedernes udvikling og plaering liver afgrende for energiforruget usholdningernes forrug forventes at vre nogenlunde stailt orruget af vedvarende energi pvirkes af, at flere indggere forventes at fltte til vandkrafterne

remskrivningen af el og varmeforruget er aseret p rnlands tatistiks efolkningsprognose samt data om det gennemsnitlige forrug af el og varme pr indgger remskrivningen er udaredet for tre senarier for erhvervsudvikling frem mod en vkst, der flger efolkningsudviklingen, en vkst p pt og en vkst p pt eregningsforudstningerne er eskrevet nrmere i ilag

remskrivningen viser, at det samlede energiforrug til el og varme vil stige frem mod , f igur nergiforrugets udvikling afhnger dog i h grad af forventningerne til den erhvervsmssige vkst, hvilket ogs kan ses af det store udslag i energiforruget i og ,

FigurFigure 14 CurrentAktuel capacitieskapacitet ofpå electricity elforsyningsanlæg supply installations i forhold in relationtil efterspørgsel, to demand, atultimo the end2016 of der opstod som flge af olieefterforskning i landet Det er vanskeligt at forudsige erhvervslivets FlereFigur2016. detaljerFind14 moreAktuel kan details ses kapacitet på on: siden: http://maps.nukissiorfiit.gl/sektorplan påhttp://maps.nukissiorfiit.gl/sektorplan elforsyningsanlæg i forhold til efterspørgsel, ultimo 2016 energiforrug, hvilket etder, at udviklingen m flges tt, s energiforsningen kan modsvare  RØD: Ingen overskydende kapacitet til rådighed. Flere detaljerRED: No kan available ses på siden: excess http://maps.nukissiorfiit.gl/sektorplan capacity. energieftersprgslen  GUL:RØD:YELLOW: BegrænsetIngen Limited overskydende overskydende available kapacitet excess kapacitet capacity. til rådighed. til rådighed. TJ GWh  GRØN:GUL:GREEN: Begrænset Overskydende Available overskydende excess kapacitet capacity. kapacitet til rådighed. til rådighed. 7.000  GRØN: Overskydende kapacitet til rådighed. 5 pct. 5.4.5.4 EnergyVirksomhedernes consumption energiforbrug by businesses 6.000 1.668 dviklingenTrends5.4. in Virksomhedernes energy i forskellige consumption erhvervs energiforbrug in energiforrugarious sectors fremgr are shown af igur in figure nedenfor 1 below. iskeindustriens Total energy 5.000 1.390 2 pct. dviklingensamledeconsumption energiforrug i inforskellige the fishing har erhvervs industryhaft nogle energiforrug has mindre seen minor udsving fremgr fluctuations siden af igur since og nedenfor00,har i deand seneste iskeindustriensin recent r years,vret 4.000 1.112 svagtsamledeconsumption stigende energiforrug has debeen enkelte har slightly haft lokaliteter nogle increasing. mindre vil der udsvingoweer, dog tpisk siden there vre willstore og typicallyhar udsving i de senestebei afstningen considerable r vret til fiskeindustrien,svagtfluctuations stigende in salesafhngigt de to enkelte the af hvorvidtfishing lokaliteter industry fiskeproduktionen vil derat indiidualdog tpisk er aktivlocalities, vre eller store edepending udsving oni afstningen whether fish til 3.000 834 fiskeindustrien, afhngigt af hvorvidt fiskeproduktionen er aktiv eller e productionTJ is actie or not. GWh 2.000 556 450 TJ GWh 400450 112 1.000 278 Private and publicPrivate service and public service 350400 98112 0 0 300350 8498 1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030 Private households Private households 300 84 250 70 Figur 16 Endeligt energiforbrug 1990-2015 med fremskrivning for 2016-2030 200250 5670 150200 4256 usholdningernes samlede energiforrug forventes at vre stort set undret frem til Det Wholesale and retail trade Wholesale and retail trade 100150 2842 Land-based fishing industry skldes flere ting Der er etdelig forskel p det gennemsnitlige energiforrug pr indgger i 10050 1428 Land-based fishing industry erne og gderne Dette har etdning for fremskrivningen, idet rnlands tatistiks BuildingBuilding and and construction construction 500 014 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 OtherOther industrial industrial activities 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 efolkningsprognosen er den samme, som anvendes i de rlige landsplanredegrelser Figur 15 Endeligt forbrug af el og varme fordelt på anvendelser Der har siden vret enkeltstende r med en Nvkst p mere end , , senest i med en vkst p ildeFigure rnlands 15 Final electricity tatistik and heat consumption broken down by use Figur 15 Endeligt forbrug af el og varme fordelt på anvendelser , og i og mellem og De fleste r har vksten i N imidlertid vret mindre end ildeource rnlands tatistics tatistikreenland 44 5.5.5.5. Energiforbrugets Trends in energy udvikling consumption frem up mod to 2030 orTo atget f anet illedeimpression af, hvordan of how ehovet the need for for el ogelectricity varme vil and udvikle heating sig overwill deelopde kommende oer the r, ercoming der udaredetyears, an oerallen overordnet proection offremskrivning energy consumption af energiforruget has been made. remskrivningen This proection showsviser, thatat erhvervsvirksomhedernesdeelopments and locations udvikling of businesses og plaering will play liver a crucial afgrende role in forenergy energiforruget consumption. usholdningernesousehold consumption forrug is forventes epected at to vre remain nogenlunde relatiely stable.stailt onsumption orruget af ofvedvarende renewable energi energy pvirkeswill be affectedaf, at flere by indggere a probable forventeshigher number at fltte of inhabitantstil vandkrafterne moing to the hydropowered towns.

remskrivningenThe proection afof elelectricity og varmeforruget and heating er consaseretumption p rnlands is based tatistikson population efolkningsprognose forecasts from samttatistics data reenland,om det gennemsnitlige as well as data forrug on aerage af el electricityog varme andpr heatingindgger consumption remskrivningen per capita. er10 udaredetThe proection for treis based senarier on three for scenarioserhvervsudvikling for business frem deelopment mod up to en 00 vkst, 1 a growthder flger rate 11 efolkningsudviklingen,following the population deelopment; en vkst ap growth ptrate ofog %; and en a vkstgrowth ratep of %pt. The eregningsforudstningernebasis for calculations is described er eskrevet in more nrmere detail in nne i ilag 1.

remskrivningenThe proection shows viser, thatat det the samlede total energy energiforrug consumption til el for og electricity varme vil and stige heating frem willmod increase , f up igurto 00, seenergiforrugets figure 1. oweer, udvikling deelopments afhnger indog energy i h consumption grad af forventningerne also depend strongly til den on erhvervsmssigeepectations for vkst,growth hvilket in the businessogs kan sector,ses af det as couldstore beudslag seen, i energiforrugetfor eample, in thei maor og ,energy

Figure 14 Current capacities of electricity supply installations in relation to demand, at the end of derconsumption opstod som fluctuation flge af olieefterforskning in 010 and 011 i landet caused Det byer vanskeligtoil eploration at forudsige in reenla erhvervslivetsnd. nergy Figur2016. Find14 moreAktuel details kapacitet on: http://maps.nukissiorfiit.gl/sektorplan på elforsyningsanlæg i forhold til efterspørgsel, ultimo 2016 energiforrug,consumption hvilketby businesses etder, isat hardudviklingen to predict, m flgesand conseuently,tt, s energiforsningen the deelopment kan modsvare must be  Flere detaljerRED: No kan available ses på siden: excess http://maps.nukissiorfiit.gl/sektorplan capacity. energieftersprgslenmonitored closely in order to ensure that energy supply matches demand.  RØD:YELLOW: Ingen Limited overskydende available kapacitet excess capacity. til rådighed. TJ GWh  GUL:GREEN: Begrænset Available overskydende excess capacity. kapacitet til rådighed. 7.0007,000  GRØN: Overskydende kapacitet til rådighed. 5%5 pct. 5.4 Energy consumption by businesses 6.0006,000 1,6681.668

Trends5.4. in Virksomhedernes energy consumption energiforbrug in arious sectors are shown in figure 1 below. Total energy 5.0005,000 1,3901.390 22% pct. dviklingenconsumption i inforskellige the fishing erhvervs industry energiforrug has seen minor fremgr fluctuations af igur since nedenfor00, and iskeindustriensin recent years, 4.0004,000 1,1121.112 samlede energiforrug har haft nogle mindre udsving siden og har i de seneste r vret Businesse consumption has been slightly increasing. oweer, there will typically be considerable Businesses s As populationAs population forecast forecast svagtfluctuations stigende in sales de to enkelte the fishing lokaliteter industry vil derat indiidualdog tpisk localities, vre store depending udsving oni afstningen whether fish til 3.0003,000 834834 fiskeindustrien,production is actie afhngigt or not. af hvorvidt fiskeproduktionen er aktiv eller e 2.0002,000 556556 Households Households TJ GWh 450 1.0001,000 278278

400 Private and public service 112 00 00 350 98 1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030 Private households 300 84 FigurFigure 16 16Endeligt Final energy energiforbrug consumption 1990-2015 1990 med-2015 fremskrivning with projections for for2016-2030 2016-2030 250 70 200 56 Wholesale and retail trade usholdningernes samlede energiforrug forventes at vre stort set undret frem til Det 150 42 Land-based fishing industry skldes flere ting Der er etdelig forskel p det gennemsnitlige energiforrug pr indgger i 100 28 erne og gderne Dette har etdning for fremskrivningen, idet rnlands tatistiks 50 Building and construction 14 10 0 Other industrial activities 0 The same population forecast is used in the annual national planning reports. 11 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 efolkningsprognosenince 11, growth er den rates samme, of more som than anvendes .% hae i de been rlige seen landsplanredegrelser in isolated years, most recently in 00, with a growthDer har rate siden of .1%, vret and in enkeltstende 01 and 01 r with med growth en Nvkst rates between p mere % end and , %. , oweer,senest i most med years en haevkst seen p Figure 15 Final electricity and heat consumption broken down by use Figur 15 Endeligt forbrug af el og varme fordelt på anvendelser , oggrowth i of og less than mellem % og De fleste r har vksten i N imidlertid vret mindre end ildeource rnlands tatistics tatistikreenland 44 45 Total energy consumption by households is likely to remain largely unchanged up to 00. There are seeral reasons for this. There is a considerable difference between aerage energy consumption per capita in the towns and in the illages.

This affects the proection because the population forecast from tatistics reenland predicts a significant degree of urbanisation up to 00. hen more people moe from the illages to the efolkningsprognosehydropowered towns, viser energy en vsentlig consumption grad isaf likely uranisering to increase. frem n mod the other Nrhand, flere this fltter effect frawill gderbe balanced til vandkrafterne, out by an epected m energiforruget decline in consumption forventes because at stige the total den population anden side of reenlandudlignes denneis epected effekt toaf declineet forventet slightly. fald i forruget som flge af, at det samlede efolkningstal i landet forventes at vre svagt faldende remskrivningenThe proection predictsviser forskelle ariation i udviklingen in deelopments mellem between de forskellige different lokaliteter, localities, f seeigur figure og 1 ilag and nnenergiforruget 1. nergy consumptionforventes at stige is likely markant to increase i Nuuk, considerably hvor indggertallet in Nuuk, forventes where the at populationstige fra a is epected i to tilgrow over from appro i . 1,000 ndggertallet in 01 toog moreenergiforruget than 1,000 forventes in 00. generelt opulation at falde and i deenergy mindre consumption er og gder are generally epected to decline in the small towns and illages.

DetNote skal that emrkes, these epectations at disse forventninger are based solely kun onaserer the population sig p efolkningsprognosen forecast. The forecast rognosen does not tagertake ikkeaccoun hensnt of til,any om specific der er future srlige proects proekter that p mayve, derinfluence vil pvirke the population,efolkningstallet, for eample feks etaleringestablishment af lufthavne of airports. TJ GWh 2750 764 NuukNuuk 2500 664 2250 2000 564

1750 464 OtherOther towns towns and and villages villages (red) (red) 1500 Sisimiut,Sisimiut, Aasiaat, Aasiaat, Tasiilaq Tasiilaq (green) (green) 364 1250 1000 264 Qaqortoq,Qaqortoq, Maniitsoq, Maniitsoq, Ilulissat Ilulissat 750 164 500 64 250 0 -36 2015 2017 2019 2021 2023 2025 2027 2029

FigurFigure 17 17 Fremskrivning Projections of af energy energiforbruget consumption til forel ogelectricity varme fordeltand heating, på byer broken og bygder, down by 2015-2030. towns and Venstrevillages, og 2015 højre-2030. akse The viser left energiforbruget i henholdsvis Terajoule og Gigawatt timer.

remskrivningenThe proection showsviser, atthat andelen the share af vedvarende of renewable energi energy af Nukissiorfiitsof Nukissiorfiit’s produktion production forventes is likely at to stigeincrease i en forperiode, a period hvorefter of time andden willvil faldethen fall.igen The Det reason skldes, for thisat tilfltningen is that the influ til vandkrafterne of people to the giverhydropowered mulighed for towns get willudnttelse enable afbetter vandkraftkapaiteten utilisation of hydropower p de steder, capacity hvor atder locations er uudnttet which kapaitetcurrently i haedag visunutilised andelen capacity. af vedvarende oweer, energi if the skalshare vre of renewablefortsat stigende, energy vil is derto continue imidlertid its vreupward ehov trend, for there investeringer will be a needi udvidelser to inest af in vandkraftvrkerneepansions of eisting eller hydropower etalering plantsaf ne or vandkraftvrkerestablishment ofogeller new hydropowervrige vedvarende plants energianlg andor other andkraftvrkerne renewable energy i Nuuk installations. og isimiut, The hvorhydropower indggertallet plants forventesin the towns at stige of Nuuk mest, and rammer isimiut, allerede which i dagare epectedderes kapaitetsloft to see the i largestvisse perioder amtidig forventes et mindre fald i indggertallet i lulissat, hvor akiitso vandkraftvrk46 har ledig kapaitet

Total energy consumption by households is likely to remain largely unchanged up to 00. There growth in population already reach their aiu capacity during certain periods t the sae are seeral reasons for this. There is a considerable difference between aerage energy tie a slight population decline is epected in lulissat where the akiitso hydropower plant has consumption per capita in the towns and in the illages. aailable capacity

This affects the proection because the population forecast from tatistics reenland predicts a 5.6. New technological possibilities in the energy supply of the future significant degree of urbanisation up to 00. hen more people moe from the illages to the echnological deelopents and continuous odernisation of production and distribution hydropowered towns, energy consumption is likely to increase. n the other hand, this effect will installations in the energy sector and the way in which this technology utilised will play a crucial be balanced out by an epected decline in consumption because the total population of reenland role in the share of renewable energy that can be achieed in the future is epected to decline slightly. he inistry of ndustry and nergy has initiated an analysis of the eisting energy syste in The proection predicts ariation in deelopments between different localities, see figure 1 and reenland he analysis will consider whether fro a helicopter perspectie the historical and nne 1. nergy consumption is likely to increase considerably in Nuuk, where the population is present supply structure atch technological deelopents his includes eaining the epected to grow from appro. 1,000 in 01 to more than 1,000 in 00. opulation and possibility to connect towns and illages by eans of odern cable technology andor oerhead energy consumption are generally epected to decline in the small towns and illages. transission lines in order to achiee a ore fleible and efficient energy syste

Note that these epectations are based solely on the population forecast. The forecast does not Modernising Greenland’s energy supply system presupposes optimisation of existing installations take account of any specific future proects that may influence the population, for eample as well as inestents in new renewable energy sources or water production ethods ro a establishment of airports. socioeconoic perspectie intelligent and targeted optiisation and odernisation of energy supply will support business deelopent and deelopents for priate consuers he ethods

Nuuk in the odernisation strategy include introduction of new renewable energy sources and technologies better utilisation of autoated systes both in the production phase and in the distribution grid better eploitation of the energy or the water olue produced thus leading to a reduction of losses in transission lines etc Other towns and villages (red) Sisimiut, Aasiaat, Tasiilaq (green) 5.7. Possibilities to connect energy networks t present the energy supply for the region coering Nuuk aniitso and isiiut coes partly Qaqortoq, Maniitsoq, Ilulissat fro the hydropower plants in ukseford and isiiut and partly fro the plant in aniitso ach indiidual town has its own dedicated energy supply because the networks are not interconnected n other words energy supply is based on islandode operation his ode of operation ensures energy supply to each indiidual town but in the oerall perspectie

Figure 17 Projections of energy consumption for electricity and heating, broken down by towns and connecting the energy supply systes would offer better opportunities for optiisation villages, 2015-2030. The left stablishing a coon network for all three towns will allow for econoies of scale and enable targeted electricity production depending on which installations hashae the highest capacity in relation to the current consuption pattern urtherore considerable econoic benefits will The proection shows that the share of renewable energy of Nukissiorfiit’s production is likely to be achieed as the diesel plant in aniitso no longer be needed because there will be access to increase for a period of time and will then fall. The reason for this is that the influ of people to the an infrastructure for transporting large energy uantities and because it will be possible to hydropowered towns will enable better utilisation of hydropower capacity at locations which increase sales of energy in the for of district heating in isiiut and for increased sales to the currently hae unutilised capacity. oweer, if the share of renewable energy is to continue its industry nterconnection of these three towns will also increase resilience in the syste thus upward trend, there will be a need to inest in epansions of eisting hydropower plants or enabling the use of other renewable energy sources particularly the use of wind power without establishment of new hydropower plants andor other renewable energy installations. The this causing disturbance in the syste hydropower plants in the towns of Nuuk and isimiut, which are epected to see the largest 46 47 urrent prodution apaities do not tae aount of expeted deelopments in te area mentioned inluding population grot in te apital nor do tey tae aount of te onsiderale deelopment in usiness potentials in te area around Maniitso in partiular

ese usiness potentials may inlude one or more mines iron niel et and aluminium prodution urtermore data entres may e loated in te large areas toards te ie seet eind te area mentioned ese onsumers are potentially ery large roust and stale ustomers for a long period of time

e need for additional energy apaity is tus a ellnon allenge i needs to e addressed itin te next fe years or example tere are positie indiations tat mining ompanies ill e starting up mining operations and tus prodution in te region itin te next fe years orldide tere is a strong need for stale preditale and reneale energy supplies to plaes ere data entres an e estalised to proess uge amounts of data

ydropoer plants may e estalised to oer te demand for energy for ne or existing usiness initiaties as tere are non potentials to produe eteen G per year orresponding to around times te urrent maximum prodution at te useford plant near uu

onneting existing supply netors and potential ne ydropoer plants in te area an e y traditional means using oeread transmission lines and taing into aount te geograpial and limate onditions lternatiely onnetions an e estalised y means of sumarine ales ere tis is more appropriate from a soioeonomi perspetie e prie of estalising an oeread poer line dimensioned for ill e around million per ilometre exluding te osts assoiated it ford span is solution is signifiantly less ostly tan a sumarine ale solution ut it presents oter allenges it regard to rossing fords ig mountains et as ell as it regard to otaining te reuired enironmental approals

uring te summer of in ollaoration it G a report as een prepared i speifially addresses te possiilities for expanding te large ydropoer potentials in te area

n parallel it tis mareting materials ae een deeloped i may e used as a asis for attrating ne industrial atiities su as data entres et n tis onnetion regular oordination meetings ill e eld it releant usinesses engaged in mining atiities in te area 5.8. Digital of control systems (smart-grid) General use of modern solutions offers a great potential for using in onnetion it energy prodution as ell ntegration of adaned ontrol and monitoring systems in te energy setor offers a great potential for optimal operation of energy prodution y enaling optimisation of 48 urrent prodution apaities do not tae aount of expeted deelopments in te area ot design and operation is is due to te fat tat digitalisation proides good opportunities mentioned inluding population grot in te apital nor do tey tae aount of te for data olletion ot entrally and deentrally mong oter tings tis ill strengten onsiderale deelopment in usiness potentials in te area around Maniitso in partiular seurity of supply and response time in relation to netor errors or readons an e redued

ese usiness potentials may inlude one or more mines iron niel et and aluminium eelopment of digital solutions is maing good progress ut in te future sustantial resoures prodution urtermore data entres may e loated in te large areas toards te ie seet ill e reuired to deelop and implement a omplete smartgrid system on all loations eause eind te area mentioned ese onsumers are potentially ery large roust and stale fibre cables will have to be laid between all Nukissiorfiit’s installations and loations ustomers for a long period of time 5.9. Wind power

n reent years ind turine tenology as undergone rapid deelopments and today energy e need for additional energy apaity is tus a ellnon allenge i needs to e produed y ind turines in enmar is one of te eapest forms of energy supply in te addressed itin te next fe years or example tere are positie indiations tat mining ountry s at eemer total apaity in enmar amounted to M of i ompanies ill e starting up mining operations and tus prodution in te region itin te next M as onsore and M as offsore fe years orldide tere is a strong need for stale preditale and reneale energy supplies to plaes ere data entres an e estalised to proess uge amounts of data xamples from anada and lasa so tat ind turines an also ontriute signifiantly to

neutral eletriity prodution in te rti regions uring uissiorfiit ill initiate ind ydropoer plants may e estalised to oer te demand for energy for ne or existing measurements at a numer of loations in Greenland usiness initiaties as tere are non potentials to produe eteen G per year

orresponding to around times te urrent maximum prodution at te useford plant er te next deade te deelopment of ind turines in Greenland is expeted to follo to near uu possile senarios

onneting existing supply netors and potential ne ydropoer plants in te area an e y • arge modern ind turines from M to supply eletriity to tons su as isimiut traditional means using oeread transmission lines and taing into aount te geograpial and Maniitso and uu in omination it diesel generator plants ydropoer solar energy limate onditions lternatiely onnetions an e estalised y means of sumarine ales et apaity alaning ill e performed y means of eletri immersion eaters in te ere tis is more appropriate from a soioeonomi perspetie e prie of estalising an distrit eating systemattery tans oeread poer line dimensioned for ill e around million per ilometre exluding te osts assoiated it ford span is solution is signifiantly less ostly tan a • maller ind turines up to in small settlements ere te ind turine is plaed sumarine ale solution ut it presents oter allenges it regard to rossing fords ig on a tiltup toer tat an e ereted itout using a moile rane apaity alaning ill mountains et as ell as it regard to otaining te reuired enironmental approals e in omination it a attery an and eletri immersion eaters as ell as a modern

diesel generator plant eause of te attery an in faourale periods it ill e possile uring te summer of in ollaoration it G a report as een prepared i to supply eletriity to a illage ased on energy from ind turines speifially addresses te possiilities for expanding te large ydropoer potentials in te area 5.10. Heat pumps n parallel it tis mareting materials ae een deeloped i may e used as a asis for eat pumps an utilise eat at lo temperatures from edro air or seaater and transform it attrating ne industrial atiities su as data entres et n tis onnetion regular into useful temperatures e smaller te temperature differene eteen te eat soure oordination meetings ill e eld it releant usinesses engaged in mining atiities in te edro air or seaater and te usetemperature te etter te performane of te eat pump area 5.8. Digital of control systems (smart-grid) General use of modern solutions offers a great potential for using in onnetion it energy prodution as ell ntegration of adaned ontrol and monitoring systems in te energy setor Status memo from the Danish Wind Turbine Owners’ Association, February 2016 offers a great potential for optimal operation of energy prodution y enaling optimisation of 48 49 A heat um eloitin seawater for heat roduction is likely to have a O oefficient of erformance of , ie 1 kWh ower used to oerate the heat um will rovide kWh heatin

se of heat ums instead of electric immersion heaters, for eamle in Nuuk, can lead to larer heat roduction for the same amount of ower roduced by the ukseford lant

eat ums may otentially comete with the ukseford lant or ostone the need to eand the lant or establish other renewable enery sources such as windsolar 5.11. Hydrogen-powered gas turbines ydroenowered as turbines are a relatively new method, which has not been tested in Arctic reions The method may be used to move enery from one locality to another

ydroowered as turbines are still bein develoed, and if this develoment is successful, the as turbines may form art of a future concet in small settlements with no hydroower suly 5.12. Steam turbines n connection with waste incineration lants, it may be ossible to heat water to a temerature at which it chanes into steam

Subseuently, the steam can drive a turbine to roduce electricity, and the remainin hot water can then be used for district heatin At resent, waste incineration lants in reenland are not desined to be able to drive steam turbines The lants will have to be converted to allow for this roduction form 5.13. Solar energy ust as with wind turbines, solar hotovoltaic installations can be used to sulement eistin electricity suly roduced by diesel ower lants and hydroower lants Future renewable enery roects will continue to focus on whether the establishment of larer solar hotovoltaic installations miht be an aroriate way to sulement electricity suly to towns and villaes

hotovoltaics are used as art of the hybrid lant in aliku, and the ossibility of usin hotovoltaics to suly Aasiaat and asiiannuit has been considered as an alternative to, or in combination with, wind or hydroower

stablishment of solar hotovoltaic installations in reenland must take into consideration that solar chanes throuhout the year The anle of solar radiation varies and hotovoltaic solar anels will, articularly in the northernmost areas, have hih roduction durin summer and almost no roduction durin winter The ercentae of enery from solar heatin can be increased by combinin solar hotovoltaic installations with storae otions such as batteries Another ossibility is to establish installations where the anle of the hotovoltaic array can be chaned over the year 50

A heat um eloitin seawater for heat roduction is likely to have a O oefficient of onseuently, recent years have seen a maor increase in the use of small solar hotovoltaic erformance of , ie 1 kWh ower used to oerate the heat um will rovide kWh heatin installations laced on the roofs of industrial and commercial buildins and rivate homes t is very ositive that there is broad interest in the enery sector, and that rivate citiens and se of heat ums instead of electric immersion heaters, for eamle in Nuuk, can lead to larer businesses articiate actively in develoin the area This also means that investments in heat roduction for the same amount of ower roduced by the ukseford lant renewable enery are distributed across several layers owever, it is necessary to evaluate the distribution between ubliclyowned and rivatelyowned renewable enery sources eat ums may otentially comete with the ukseford lant or ostone the need to eand the lant or establish other renewable enery sources such as windsolar ltimately, further eansion of rivate installations can erode the basis for ublic electricity suly, as ublic suly will still be subect to a suly obliation All else bein eual, this means 5.11. Hydrogen-powered gas turbines that Nukissiorfiit must maintain roduction installations as well as the distribution rid The costs ydroenowered as turbines are a relatively new method, which has not been tested in Arctic of sustainin, maintainin and eandin these installations will thus be distributed between reions The method may be used to move enery from one locality to another fewer customers, which means that consumer rices will o u

ydroowered as turbines are still bein develoed, and if this develoment is successful, the as 5.14. Summary turbines may form art of a future concet in small settlements with no hydroower suly It is assessed that Greenland’s huge hydropower potential can be exploited commercially in connection with sulyin enery to lare industrial enterrises based on renewable enery 5.12. Steam turbines sources This may include suly of enery to data centres and future industrial ventures For still n connection with waste incineration lants, it may be ossible to heat water to a temerature at larer, more worldwide and trendsettin businesses, suly based on renewable enery is an which it chanes into steam absolute reuirement, not least as a way of brandin the business

Subseuently, the steam can drive a turbine to roduce electricity, and the remainin hot water The reatest and most easily eloitable otentials are believed to be in the area between and can then be used for district heatin At resent, waste incineration lants in reenland are not behind the towns of Sisimiut, aniitso and Nuuk An analysis has been initiated which desined to be able to drive steam turbines The lants will have to be converted to allow for this sulements known data from Alcao The analysis shows that renewable enery suly of u to roduction form aro 60 W can be established Of course, this involves a considerable investment, artly in 5.13. Solar energy hydroower lants and artly in transmission lines owever, such an investment may be of ust as with wind turbines, solar hotovoltaic installations can be used to sulement eistin financial interest to industry, if the resultin unit costs are sufficiently low electricity suly roduced by diesel ower lants and hydroower lants Future renewable enery roects will continue to focus on whether the establishment of larer solar hotovoltaic inkin of enery sulies in the same area may be erformed by usin traditional overhead installations miht be an aroriate way to sulement electricity suly to towns and villaes transmission lines, a method that is well established in reenland ecent develoments in submarine cable technoloy are eected to brin further imrovements, as other arts of the hotovoltaics are used as art of the hybrid lant in aliku, and the ossibility of usin utilities sector also need to be able to transfer lare amounts of enery across lon distances n hotovoltaics to suly Aasiaat and asiiannuit has been considered as an alternative to, or in the loner term, this technoloy, ossibly in combination with overhead transmission lines, is combination with, wind or hydroower assessed to be relevant in a reenland contet, in articular in connection with assae across fords, inaccessible areas, etc stablishment of solar hotovoltaic installations in reenland must take into consideration that solar radiation chanes throuhout the year The anle of solar radiation varies and hotovoltaic The use of renewable enery has increased, but there is still some way to o before reenland is solar anels will, articularly in the northernmost areas, have hih roduction durin summer and indeendent of imorts of oil for energy supply. Nukissiorfiit’s production of renewable energy almost no roduction durin winter The ercentae of enery from solar heatin can be increased must increase by more than 0 ercentae oints in the comin years to meet the olitical oal of by combinin solar hotovoltaic installations with storae otions such as batteries Another 100 reen enery There is a need for a lonterm investment lan which suorts and romotes ossibility is to establish installations where the anle of the hotovoltaic array can be chaned business develoment, and which ensures that rice levels decline in the lon term over the year 0 50 51

In order to ensure that supply as a whole is based more on renewable energy a considerable 6. Modernisering af energisektoren - Vandkraft effort is needed to replace heat supply from priately owned oilfired installations with collectie De mange muligheder for at ruge vandkraft er en unik og vrdifuld ressoure for landet Det er heat based on renewable energy. his offers a great potential particularly in towns. Naalakkersuisuts vision at ge anvendelsen af vandkraft vsentligt i de kommende r Det skal sikre staile energipriser og fortsat erhvervsudvikling i hele landet Derfor skal flere af landets mange potentialer for vandkraft undersges og udnttes De skal forsne de strre og mindre he proection of energy consumption shows that deelopments in energy consumption are highly osteder og samtidig tiltrkke virksomheder og investeringer dependent on business deelopments but that the energy supply should also be adapted to internal migration. uture energy supply can be modernised and become more flexible and this andkraft er i dag den primre vedvarende energikilde i energiforsningen og skal fremover may benefit both the security of supply and business deelopment. enttes endnu mere om det fremgr af oalitionsaftale nsker Naalakkersuisut at undersge muligheden for at igangstte vandkraftproekter i asiaat, asigiannguit, aniitso, In theory it will be possible to establish a submarine cable which will put an end to islandmode aamiut og Nanortalik Der er ogs planer om udvidelse af eksisterende vandkraftvrker samt operation on the west coast. oweer a proect of this nature will inole ery high costs and etalering af vandkraftforsning til flere mindre osteder will only be appropriate if new larger hydropower plants are established at the same time thus enabling production of larger amounts of electricity. ontinuation of the proect may be dviklingen i vandkrafts andel af Nukissiorfiits afstning fremgr af igur andkraft udgorde pt af afstningen i var denne get til af Nukissiorfiits el og varmeforsning particularly releant if there are considerable technological deelopments in the area or if large var aseret p vandkraft business customers establish themseles in Greenland and this leads to establishment of a large priate hydropower plant that can also supply energy to seeral towns. %

Figur 18 Vandkrafts andel af Nukissiorfiits afsætning af el og varme. ilde Nukissiorfiit

6.1. Der er fem vandkraftværker og potentiale for flere otentialet for produktion af energi p vandkraftvrker er stort ortet nedenfor igur giver et overlik over de eksisterende vandkraftvrker og de vandkraftpotentialer, der i dag er kendte og eskrevne Det vil i praksis altid skulle vurderes, hvorvidt etalering af et vandkraftvrk p det enkelte sted er teknisk og samfundskonomisk hensigtsmssig

De ti strste, kendte potentialer enttes ikke p nuvrende tidspunkt Det skldes, at de ligger

Nukissiorfiit , Årsregnskab 2016, side . httpsnukissiorfiitglpontentuploadsNukissiorfiitrsrapportDfinalpdf 52

In order to ensure that supply as a whole is based more on renewable energy a considerable 6. ModernisingModernisering the af energy energisektoren sector - Hydropower - Vandkraft effort is needed to replace heat supply from priately owned oilfired installations with collectie Dehe mange many possibilitiesmuligheder tofor use at hydropowerruge vandkraft constitute er en unik a uniue og vrdifuld and aluable ressoure resource for landetfor Greenland. Det er heat based on renewable energy. his offers a great potential particularly in towns. NaalakkersuisutsNaalakkersuisut’s visionision atis toge increase anvendelsen the use af of vandkraft hydropower vsentligt significantly i de inkommende the coming r years. Det hisskal sikrewill ensure staile stableenergipriser energy og prices fortsat and erhvervsudvikling continued business i hele deelopment landet Derfor throughout skal flere Greenland.af landets mange potentialer for vandkraft undersges og udnttes De skal forsne de strre og mindre he proection of energy consumption shows that deelopments in energy consumption are highly herefore more of the hydropower potentials in Greenland should be examined and exploited. ostederhey will ogsupply samtidig energy tiltrkke to both virksomheder small and og large investeringer settlements and at the same time attract dependent on business deelopments but that the energy supply should also be adapted to businesses and inestment. internal migration. uture energy supply can be modernised and become more flexible and this andkraft er i dag den primre vedvarende energikilde i energiforsningen og skal fremover may benefit both the security of supply and business deelopment. enttesoday hydropower endnu mere is theom primary det fremgr renewable af oalitionsaftale energy source used for energynsker supplyNaalakkersuisut and in the at undersgefuture it mulighedenwill be utilised for ateen igangstte more. vandkraftproekters stated in the i asiaat, asigiannguit, oalition greement aniitso, In theory it will be possible to establish a submarine cable which will put an end to islandmode aamiutNaalakkersuisut og Nanortalik wants toDer examine er ogs theplaner possibility om udvidelse to initiate af eksisterende hydropower vandkraftvrker proects in asiaat samt operation on the west coast. oweer a proect of this nature will inole ery high costs and etasigiannguitalering af vandkraftforsning aniitso aamiut til flere and mindre Nanortalik. osteder here are also plans to expand existing will only be appropriate if new larger hydropower plants are established at the same time thus hydropower plants and establish hydropower supply to seeral small settlements. enabling production of larger amounts of electricity. ontinuation of the proect may be dviklingen i vandkrafts andel af Nukissiorfiits afstning fremgr af igur andkraft udgorde Trends pt afin afstningenthe share of i hydropower ofvar Nukissiorfiit’s denne get til sales are af Nukissiorfiitsshown in figure el og . varmeforsning ydropower particularly releant if there are considerable technological deelopments in the area or if large varconstituted aseret p vandkraft of sales in . In this figure had increased to . business customers establish themseles in Greenland and this leads to establishment of a large priate hydropower plant that can also supply energy to seeral towns. %

FigurFigure 18 18Vandkrafts Share of hydropower andel af Nukissiorfiits of Nukissiorfiit’s afsætning sales af of el electricity og varme. and heat. ildeource Nukissiorfiit Nukissiorfiit

6.1. FiveDer erhydropower fem vandkraftværker plants and potentialog potentiale to establish for flere more otentialethere is great for potentialproduktion for af production energi p vandkraftvrkerof energy based eron stort hydropower ortet nedenfor plants. he igur map below giver etfigure overlik overproides de eksisterende an oeriew vandkraftvrker of existing hydropower og de vandkraftpotentialer, plants and the hydropower der i dag potentialser kendte ogthat eskrevne are currently Det vilknown i praksis and altid described. skulle vurderes, In practice hvorvidt an assessment etalering willaf et always vandkraftvrk be reuired p det to enkeltedetermine sted whether er teknisk establishment og samfundskonomisk of a hydropower hensigtsmssig plant at a specific location is appropriate from a technical and socioeconomic perspectie. Dehe ti ten strste, largest kendte of the potentialerknown potentials enttes are ikkenot currentlyp nuvrende being utilised.tidspunkt Det skldes, at de ligger

NukissiorfiitNukissiorfiit , ÅrsregnskabÅrsregnskab 2016 2016, (Financial side . statements 2016) page . httpsnukissiorfiitglpontentuploadsNukissiorfiitrsrapporthttpswww.nukissiorfiit.glwpcontentuploadsNukissiorfiitrsrapportDfinalpdffinal.pdf 52 53 The reason for this is that they are loated far fro residential areas and that deand fro the losest towns is insuffiient to oer the onstrution osts This irustane ay hane if usinesses estalish theseles lose to the hydropower potentials

★ Hydropower plant

Hydropower potential ● Capacity unknown ● Capacity <1 MW ● Capacity 1-10 MW ● Capacity 10-100 MW ● Capacity >100 MW

Figure 19 Hydropower plants and known hydropower potentials Source: Asiaq. For more detail on hydropower potentials go to: http://maps.nukissiorfiit.gl/sektorplan

6.2 The five existing hydropower plants constitute a significant part of the energy supply ie hydropower plants hae een estalished in reenland sine They supply si towns see tale This has resulted in a nuer of enefits for the eonoy seurity of supply and enironental onditions or eaple there has een a sinifiant derease in operatin osts and eletriity pries in Nuuk

total of illion pries has een inested in the hydropower plants Nukissiorfiit assesses that the annual prodution of the hydropower plants orresponds to diesel power plants and oilfired oilers onsuin illion litres of diesel at a total ost of illion pril pries urtherore this also eans that the hydropower plants annually ontriute up to of aron displaeent

54 The reason for this is that they are loated far fro residential areas and that deand fro the Table 13. Basic data on the five existing hydropower plants losest towns is insuffiient to oer the onstrution osts This irustane ay hane if usinesses estalish theseles lose to the hydropower potentials ukseford Nuuk Tasiila Tasiila Narsa and orlortorsua aorto isiiut isiiut aakitso lulissat Total oure Nukissiorfiit 6.3 Establishing hydropower plants requires significant investment The onstrution osts of hydropower plants are hih while operatin osts are low The opposite is true for diesel power plants where onstrution osts are ore finanially anaeale ut where operatin osts are hih priarily due to the need for iported oil

onoi iaility for hydropower plants depends on whether the plants are estalished in areas where sales an offset the inestent any years into the future The hih estalishent osts are not related to the faility alone There are also hih osts in onnetion with onstrutin tunnels for water supplies and the transission lines to transport enery fro the power plant to the supply area Therefore there will e hydropower potentials where it would not e iale fro a soioeonoi perspetie to eploit the in order to supply settleents as doin so would inrease eletriity pries for onsuers

There ay e reat potential in inorporatin industry potentials with supply to settleents f supplyin lare eneryonsuin opanies an e oined with supplyin priate onsuers Figure 19 Hydropower plants and known hydropower potentials this will iproe opportunities to eploit ore hydropower potentials without inreasin enery Source: Asiaq. For more detail on hydropower potentials go to: http://maps.nukissiorfiit.gl/sektorplan pries 6.4 Climate change affects hydropower potentials 6.2 The five existing hydropower plants constitute a significant part of the nestent plannin in hydropower plants ust take into onsideration that liate hane has a energy supply direct impact on Greenland’s hydropower resources. Potential hydropower production in ie hydropower plants hae een estalished in reenland sine They supply si towns see reenland is losely linked to oth the aount of eltwater fro the ie sheet and the aount of tale This has resulted in a nuer of enefits for the eonoy seurity of supply and preipitation enironental onditions or eaple there has een a sinifiant derease in operatin osts and eletriity pries in Nuuk

total of illion pries has een inested in the hydropower plants Nukissiorfiit assesses that the annual prodution of the hydropower plants orresponds to diesel power plants and oilfired oilers onsuin illion litres of diesel at a total ost of illion pril pries urtherore this also eans that the hydropower plants annually ontriute up to tonnes of aron displaeent

54 55 or this sector plan the Geoloical urey o enmar and Greenland G toether with sia and the anish eteoroloical nstitute hae South-West Greenland prepared an analysis o oerall deelopments in 60 South-WestIce melt from Greenland the ice Greenland’s hydropower potentials. he analysis Icesheet melt from the ice sheet compares measurements o ice melt and precipitation 2003-2014 rom two periods and . 1980-1991 ] ] 1 1 - 40 he ice melt rom the has an impact on commercial potentials in particular. he analysis shows a pronounced increase in runo rom Monthly runoff Q [Gt a [Gt Q runoff Monthly 20 the ice in outhest Greenland. he total increase has Q [Gt a- Monthly runoff een calculated at oer hiher in compared to . he aerae dierence oer the year is shown in iure . oweer the analysis 0 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. also shows that the ariation in runo rom year to a) Jan. Feb. Mar. Apr. May Jun.Month Jul. Aug. Sep. Oct. Nov. Dec. year has increased siniicantly. Month Figure 20 Ice melt from the Greenland ice sheet ource G

ith reard to the hydropower potential at asersia with one o the larest commercial potentials in Greenland the conseuences o the increased ice melt are particularly stron. here has een a more than increase in ice melt rom the ice coer in asersia etween the periods and .ere too the amount o water has aried more rom year to year.

G En analyse af behovet for en ny kortlægning af Grønlands vandkraftresurser ater low and climate hae een measured since . hereore a dierent time interal is ein used than or the other analyses.

56

il rug for sektorplanen har i samarede med sia og D udaredet en analse af den overordnede udvikling i rnlands vandkraftpotentiale analsen sammenlignes mlinger af afsmeltning og nedr for de to perioder og

fsmeltning fra ndlandsisen har isr etdning for de store erhvervspotentialer er viser analsen, at der er sket en markant stigning i afstrmningen fra isen i det sdvestlige rnland Den samlede stigning er eregnet til at vre over en halv gang here i end i Den gennemsnitlige forskel over ret er vist i igur nalsen viser imidlertid ogs, at variationen i afstrmningen fra r til r er levet

vsentlig strre Figur 20 Afsmeltning fra Indlandsisen Kilde: GEUS ed vandkraftpotentialet ved asersia, der er et af de strste erhvervspotentialer i landet, opleves det i h grad, at afsmeltningen fra isen er steget amlet har der vret over mere afstrmning fra isdkket i asersia i perioden i forhold til gs her har mngden af vand varieret mere fra r til r

ngden af nedr er isr relevant for de or this sector plan the Geoloical urey o enmar and Greenland G toether with sia he aont o preipitation is espeially releant a) b) mindre, nre vandkraftpotentialer nalsen or saller hydropower potentials loated lose to and the anish eteoroloical nstitute hae viser, at forskellen p afstrmningen fra de isfri prepared an analysis o oerall deelopments in South-West Greenland ran areas. he analysis shows that the dierene Ice melt from the ice omrder, dvs fra nedr, umiddelart er Greenland’s hydropower potentials. he analysis sheet in rno ro ieree areas i.e. ro preipitation vsentlig mindre mellem de to perioder end for compares measurements o ice melt and precipitation is apparently siniiantly saller etween the two afstrmningen fra isen amlet set, er rom two periods and . tie periods than or rno ro ie. erall

] 1

- afstrmningen fra det isfri land steget med en rno ro ieree areas inreased y a third ro trededel fra perioden til he ice melt rom the Greenland ice sheet has an the period to the period . Det dkker imidlertid over store geografiske impact on commercial potentials in particular. he oweer the oerall ire oers lare forskelle nogle omrder er nedren steget, analysis shows a pronounced increase in runo rom eoraphial dierenes. reipitation has Monthly runoff Q [Gt a [Gt Q runoff Monthly mens den i andre er faldet Dette er vist i igur the ice in outhest Greenland. he total increase has inreased in soe areas t has dereased in

een calculated at oer hiher in others. his is shown in ire . amlet set etder ovenstende, at de kendte compared to . he aerae dierence oer vandkraftpotentialer i landet formentlig er strre the year is shown in iure . oweer the analysis -3 -2 -1 0 1 2 3 -36 -24 -12 0 12 24 36 erall the aoe eans that nown hydropower mm water eq. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. mm water eq. % endpotentials det, der in er Greenland eskrevet arei den proaly seneste larersamlede than also shows that the ariation in runo rom year to a) Month desried in the latest report ro . his year has increased siniicantly. FigurFigure 21 21Afstrømningen Runoff from fraice det-free isfri areas land rapport fra Det glder speielt for de applies in partilar to the hydropower potentials Figure 20 Ice melt from the Greenland ice ildeore G vandkraftpotentialer, der primrt estr af sheet that are ased priarily on ie elt while the afsmeltning fra isen, mens vandtilstrmningen til ource G inlow o water to the saller potentials sees to hae inreased in soe areas and dereased in

ith reard to the hydropower potential at asersia with one o the larest commercial , En analyse af behovet for en ny kortlægningothers. af Grønlands t is vandkraftresurser iportant to tae this into aont potentials in Greenland the conseuences o the increased ice melt are particularly stron. Der er foretaget mlinger af vandfring og klima siden when Derfor plannin enttes et hydropowerandet interval end deelopent for de vrige in here has een a more than increase in ice melt rom the ice coer in asersia etween the analser Greenland. periods and .ere too the amount o water has aried more rom year to 6.5 Hydropower potentials can attract new industries and investments year. st as with ineral orrenes hydropower potentials are an iportant resore that old e an eonoi oon or Greenland. or this reason aalaersist also wants to srey and proote the hydropower resores in Greenland eery year to attrat new indstries and eternal inestent. he intention is irst and oreost to attrat siness atiity and inestent that an enerate inreased rowth. his old also help ae proitale otherwise nproitale proets to spply hydropower to settleents ease it wold enale sales o hydropower to sinesses or ollaoration etween issioriit and sinesses or eternal inestors to estalish hydropower plants.

Improved access to data on known hydropower potentials Over the years, large amounts of data have been collected on Greenland’s hydropower potentials. or a ner o years now os has een on those potentials that an e eploited to spply eletriity to lare settleents. n reent years howeer the potentials to spply eletriity to saller settleents hae also een stdied in ore detail.

n data on Greenlands hydropower potentials was diitised and ade aessile to the pli at httpaps.nissioriit.lsetorplan. he oetie is to reate a etter oerall pitre G En analyse af behovet for en ny kortlægning af Grønlands vandkraftresurser ater low and climate hae een measured since . hereore a dierent time interal is ein used than or the other analyses.

56 57 of nown hydropower potentials in Greenland and to provide improved access for public authorities, businesses and other staeholders to information on completed preliminary surveys. he data on the website will be updated regularly.

he new digital platform will be used in efforts to communicate and promote Greenlands hydropower potentials. asy access to this material ensures that businesses and investors are more liely to see the advantage in eploiting the potentials that the Greenland elfGovernment is currently not planning to eploit, or that would only be profitable to eploit collaboratively with others. 6.6 Focused efforts to map and market commercial potentials n , aalaersuisut will prepare a promotional effort targeting energyintensive industries. amples of energyintensive industries are mining, data centres, steelwors and aluminium plants. or eample, investment prospectuses have been prepared on eploitation of hydropower potentials for energyintensive industries. he promotional effort will be continuously followed up by new initiatives and gauging of the potential to eploit both large hydropower potentials and the uniue Greenland geography, location and climate. or eample, there are possible potentials in establishing data centres in Greenland, with its colder climate and lower level of security threat.

s a central part of the promotional effort, an initiative was launched in to map and describe in more detail the largest commercial potentials in Greenland. he material from this initiative will mae it easier for foreignbased businesses and investors to see the potentials in establishing themselves in Greenland and using Greenland hydropower.

urthermore, there will be a comprehensive update to the report on Greenlands hydropower potentials Grønlands vandkraftressourcer – En oversigt). he report has so far been the most important source of material compiled on hydropower potentials in Greenland. s described above, Greenlands hydropower potentials are probably much larger than estimated in the report due to the effects of climate change. his is especially true for catchment areas that receive glacial meltwater. urthermore, differences in runoffs have become greater from year to year, and further surveys are needed to describe this.

uring the autumn of , in collaboration with G and other partners, the former inistry of ndustry and nergy completed comprehensive promotional material about the same hydropower potential that lcoa has previously eamined. he promotional material will be targeted internationally at energyintensive industries.

urthermore, other hydropower potentials have been identified, and they will be analysed and promoted in the years to come. 6.7 Expanding existing hydropower plants aalaersuisut aims to ensure that hydropower together with waste incineration and other renewables can meet the full demand for electricity and heating in hydropower towns. t will

G , En analyse af behovet for en ny kortlægning af Grønlands vandkraftresurser 58 of nown hydropower potentials in Greenland and to provide improved access for public therefore be necessary over the coming years to ascertain how to epand hydropower production authorities, businesses and other staeholders to information on completed preliminary surveys. or some other renewablesbased energy supply to uu, asiila, aorto, arsa and isimiut. he data on the website will be updated regularly.

ydropower can be supplemented by renewableenergy technologies such as photovoltaics and he new digital platform will be used in efforts to communicate and promote Greenlands wind turbines, and it can be made more efficient by using heat pumps. his is being attempted hydropower potentials. asy access to this material ensures that businesses and investors are more liely to see the advantage in eploiting the potentials that the Greenland elfGovernment with regard to the supply in isimiut. is currently not planning to eploit, or that would only be profitable to eploit collaboratively with others. here will also be a need for epansion and connection to interruptible electric heating in hydropower towns. 6.6 Focused efforts to map and market commercial potentials n , aalaersuisut will prepare a promotional effort targeting energyintensive industries. Nuuk amples of energyintensive industries are mining, data centres, steelwors and aluminium plants. he population of uu is epected to increase significantly in the coming years. s described in or eample, investment prospectuses have been prepared on eploitation of hydropower section , the population is epected to increase from , in to more than , in . potentials for energyintensive industries. he promotional effort will be continuously followed up ommunearfi ermersoo plans to develop the town so the population reaches , by . by new initiatives and gauging of the potential to eploit both large hydropower potentials and the number of initiatives will therefore be launched in concerning the epansion of the uniue Greenland geography, location and climate. or eample, there are possible potentials in energy supply to uu, including an eamination of the possibilities of epanding hydropower establishing data centres in Greenland, with its colder climate and lower level of security threat. supply to the town.

s a central part of the promotional effort, an initiative was launched in to map and describe everal opportunities will be studied in more detail the largest commercial potentials in Greenland. he material from this initiative will mae it easier for foreignbased businesses and investors to see the potentials in establishing  ppropriate epansion to the useford plant. themselves in Greenland and using Greenland hydropower.  s an alternative, whether it would be possible to establish a hydropower plant from another hydropower potential in cooperation with a business aiming to use hydropower. urthermore, there will be a comprehensive update to the report on Greenlands uch collaboration would benefit both parties and possibly provide the opportunity to hydropower potentials Grønlands vandkraftressourcer – En oversigt). he report has so far been couple the energy supply between uu and aniitso. the most important source of material compiled on hydropower potentials in Greenland. s  ossibilities to eploit waste incineration and other energy sources more effectively in described above, Greenlands hydropower potentials are probably much larger than estimated in uu. the report due to the effects of climate change. his is especially true for catchment areas that receive glacial meltwater. urthermore, differences in runoffs have become greater from year t is important to consider the timing of a possible epansion of the hydropower supply to uu. to year, and further surveys are needed to describe this. rom an economic perspective, it would be appropriate to postpone the epansion for as long as possible. his can be achieved by using other solutions in the supply area until demand is high uring the autumn of , in collaboration with G and other partners, the former inistry of enough for an epanded hydropower capacity to be put into service immediately after ndustry and nergy completed comprehensive promotional material about the same hydropower establishment. herefore, it may turn out to be economically advantageous to use fossil fuels for potential that lcoa has previously eamined. he promotional material will be targeted heat production for a period of time, even if this conflicts with the obective of increased use of internationally at energyintensive industries. renewable energy.

urthermore, other hydropower potentials have been identified, and they will be analysed and Tasiilaq promoted in the years to come. t present, the hydropower supply in asiila is not adeuate to cover all demand or supply the town with electric heating. ew initiatives aimed at increasing hydropower supply will be 6.7 Expanding existing hydropower plants launched in . aalaersuisut aims to ensure that hydropower together with waste incineration and other renewables can meet the full demand for electricity and heating in hydropower towns. t will

ommunearfi ermersoo , – . G , En analyse af behovet for en ny kortlægning af Grønlands vandkraftresurser 58 59 Qaqortoq and Narsaq aalaersuisut has begun epanding the catchment area in connection with the orlortorsua hydropower plant that supplies aorto and arsa. he purpose of the epansion is to increase the possibility of using hydropower for heat supply. urthermore, the epansion also facilitates supply of hydropower to mining proects in the area. t has been necessary to carry out a new tendering round for the epansion proect. endering is epected to be completed during the autumn of with a view to completing the epansion in the period . 6.8. Hydropower supply to more settlements n order to ensure that hydropower can cover a larger percentage of the energy supply, it is necessary to identify appropriate locations to establish the net hydropower plant. ew hydropower plants will be established on an ongoing basis to supply large and small settlements, if doing so is economically viable.

n the 2018 Coalition Agreement, Naalakkersuisut set goals for “initiating hydropower proects in asiaat, asigiannguit, aniitso, aamiut and anortali. n addition to this, aalaersuisut also believes that it is relevant to carry out studies regarding establishment of hydropower supply to smaller settlements.

o ensure that proects do not lead to rising energy prices, aalaersuisut will focus on identifying good technical solutions and suitable financing models before the individual proects are completed. his could be achieved in collaboration with businesses interested in renewable energy supply, or in collaboration with eternal investors who see a commercial potential in establishing hydropower supply in the areas in uestion. Aasiaat and Qasigiannguit n aalaersuisut will complete analyses of renewable energy supply opportunities for asiaat and asigiannguit. he analyses have studied the conseuences of establishing a hydropower plant and, alternatively, establishing other forms of renewable energy supply andor energysaving initiatives.

Maniitsoq here has previously been an epectation that larger industrial enterprises would establish hydropower proects near aniitso. ploitation of the maor hydropower potentials between aniitso and uu is an obvious opportunity to collaborate with businesses with regard to supplying residents in the area. owever, the possibility of establishing a hydropower supply to aniitso from two smaller hydropower potentials close to the town is also being looed into. Nanortalik and Paamiut aalaersuisut will investigate possible hydropower proects in anortali and aamiut. aterial has previously been prepared on the possibility of establishing hydropower supply to the two towns. hese studies will be completed during .

60 Qaqortoq and Narsaq Other settlements aalaersuisut has begun epanding the catchment area in connection with the orlortorsua maller hydropower plants may e an appropriate solution to supply smaller settlements hydropower plant that supplies aorto and arsa. he purpose of the epansion is to increase Naalakkersuisut will identify sites where it might e tehnially possile and eonomially the possibility of using hydropower for heat supply. urthermore, the epansion also facilitates appropriate to estalish hydropower supply to smaller settlements supply of hydropower to mining proects in the area. t has been necessary to carry out a new tendering round for the epansion proect. endering is epected to be completed during the ine 201, initial mappings of hydropower potentials near fie smaller settlements hae een autumn of with a view to completing the epansion in the period . ompleted eertarsuatsiaat, assiarsuk, , and ttoortoormiit18 A sreening has 6.8. Hydropower supply to more settlements also een ompleted of all settlements whih do not hae any preiously identified hydropower n order to ensure that hydropower can cover a larger percentage of the energy supply, it is potentials urther studies are needed efore a deision an e made regarding the estalishment necessary to identify appropriate locations to establish the net hydropower plant. ew of smaller hydropower plants hydropower plants will be established on an ongoing basis to supply large and small settlements, if doing so is economically viable.

n the 2018 Coalition Agreement, Naalakkersuisut set goals for “initiating hydropower proects in asiaat, asigiannguit, aniitso, aamiut and anortali. n addition to this, aalaersuisut also believes that it is relevant to carry out studies regarding establishment of hydropower supply to smaller settlements.

o ensure that proects do not lead to rising energy prices, aalaersuisut will focus on identifying good technical solutions and suitable financing models before the individual proects are completed. his could be achieved in collaboration with businesses interested in renewable energy supply, or in collaboration with eternal investors who see a commercial potential in establishing hydropower supply in the areas in uestion. Aasiaat and Qasigiannguit n aalaersuisut will complete analyses of renewable energy supply opportunities for asiaat and asigiannguit. he analyses have studied the conseuences of establishing a hydropower plant and, alternatively, establishing other forms of renewable energy supply andor energysaving initiatives.

Maniitsoq here has previously been an epectation that larger industrial enterprises would establish hydropower proects near aniitso. ploitation of the maor hydropower potentials between aniitso and uu is an obvious opportunity to collaborate with businesses with regard to supplying residents in the area. owever, the possibility of establishing a hydropower supply to aniitso from two smaller hydropower potentials close to the town is also being looed into. Nanortalik and Paamiut aalaersuisut will investigate possible hydropower proects in anortali and aamiut. aterial has previously been prepared on the possibility of establishing hydropower supply to the two towns. hese studies will be completed during .

18 Asia 201 Asia 201

60 0 61 7. Modernising the energy sector - other renewable energy sources Nature offers many soures of renewale energy suh as the sun, wind, tidal waters and water nergy supply annot solely e ased on hydropower ther renewale energy tehnologies should therefore e promoted and tested A numer of pilot proets with wind power, solar energy, heat pump tehnology, and ominations of the different solutions will e arried out Naalakkersuisut will also inrease ooperation with other ountries sharing Greenland’s Arctic climate and supply challenges.

n order meet the Coalition Agreement goal to e selfsuffiient with green energy, Naalakkersuisut will work towards inreased use of other renewale energy soures, in addition to hydropower his goal is also desried in the 201 nfrastruture Agreement he Agreement states that, for loations where it is not possile or soioeonomially iale to estalish hydropower plants, other renewale energy soures will e eamined to determine whether these ould e soioeonomially iale alternaties

As already stated, hydropower is the most important renewale energy soure in reenland at present oweer, there are a numer of other renewale energy soures whih ould e addressed in addition to hydropower n the short term this applies to waste, solar energy and wind energy ous will also e on the possiility of using other, more reent tehnologies An eample of this is heat pump tehnology, whih makes it possile to eploit different heat soures suh as edrok, soil and sea water

est proets and knowledge ompilation are reuired to ensure est possile eploitation of these resoures under the uniue onditions that eist in reenland hey are also neessary in the long term to ensure that new tehnologies are taken into use as they proe iale 7.1. Production from other renewable energy sources is still modest letriity generated y photooltais and wind turines only makes up a small perentage of renewale energy prodution As mentioned aoe, tatistis reenland does not hae data on these renewale energy plants oweer, Nukissiorfiit has data on some of the prodution from the solar photooltai installations onneted to the puli distriution network, eause the owners of these installations reeie payments from Nukissiorfiit for the surplus energy they sell to the grid ee tale 1

62 1 7. Modernising the energy sector - other renewable energy sources Table 14. Supply of renewable energy for the Nukissiorfiit grid in the period 2014-2016, kWh Nature offers many soures of renewale energy suh as the sun, wind, tidal waters and water anrtali nergy supply annot solely e ased on hydropower ther renewale energy tehnologies aamiut should therefore e promoted and tested A numer of pilot proets with wind power, solar aniits energy, heat pump tehnology, energy storage and ominations of the different solutions will e Aasiaat arried out Naalakkersuisut will also inrease ooperation with other ountries sharing aatsut Greenland’s Arctic climate and supply challenges.

n order meet the Coalition Agreement goal to e selfsuffiient with green energy, 7.2. Wind power and solar energy integration into the public electricity Naalakkersuisut will work towards inreased use of other renewale energy soures, in addition to supply hydropower his goal is also desried in the 201 nfrastruture Agreement he Agreement ind per and slar energy are mature technlgies and there has een psitie eperience states that, for loations where it is not possile or soioeonomially iale to estalish using them in Arctic regins. herere it ill e cnsidered h these energy types can e hydropower plants, other renewale energy soures will e eamined to determine whether these included t a greater etent in the Greenland energy supply in the uture. ould e soioeonomially iale alternaties

Wind energy As already stated, hydropower is the most important renewale energy soure in reenland at here is nly limited eperience ith the use ind turines in Greenland. eer ther Arctic present oweer, there are a numer of other renewale energy soures whih ould e regins such as Alasa hae had psitie eperience ith ind turines een in areas hich addressed in addition to hydropower n the short term this applies to waste, solar energy and peridically eperience strng inds and ery l temperatures. wind energy ous will also e on the possiility of using other, more reent tehnologies An uissiriit ill eamine the ptential r using ind per ia three initiaties eample of this is heat pump tehnology, whih makes it possile to eploit different heat soures suh as edrok, soil and sea water 

est proets and knowledge ompilation are reuired to ensure est possile eploitation of nitially uissiriit is speciically cnducting ind measurements t ascertain hether it these resoures under the uniue onditions that eist in reenland hey are also neessary in uld e apprpriate t estalish ind per in isimiut Aasiaat and asigiannguit as a the long term to ensure that new tehnologies are taken into use as they proe iale supplement t the hydrper supply r prductin rm diesel plants. As descried in 7.1. Production from other renewable energy sources is still modest sectin the hydrper ptential y isimiut is nly suicient t peridically meet the letriity generated y photooltais and wind turines only makes up a small perentage of town’s heating demand. Therefore, it might be appropriate to combine the supply ith renewale energy prodution As mentioned aoe, tatistis reenland does not hae data on ind per r ther technlgies. ind measurements ill als e made in ther tns these renewale energy plants oweer, Nukissiorfiit has data on some of the prodution from here energy supply installatins reuire reurishment r renatin. the solar photooltai installations onneted to the puli distriution network, eause the  owners of these installations reeie payments from Nukissiorfiit for the surplus energy they sell ssiilities t use smaller turines t supplement supply t illages culd e studied. to the grid ee tale 1 here may e an ptin t use the turines placed n a tilt up ter that can e erected ithut using a mile crane.  he pilt prect in galiu inles ind turines that are part the hyrid plant t supply the illage. n galiu the ind turines are small units munted n the phtltaic slar panels.

62 1 63 Solar energy ust as with wind turbines, soar photootaic instaations can be used to suppement eisting eectricit supp produced b diese power pants and hdropower pants. uture renewabe energ proects wi continue to focus on whether the estabishment of arger soar photootaic instaations might be an appropriate wa to suppement eectricit supp to towns and iages. hotootaics wi be used as part of the hbrid pant in gaiu, and the possibiit of using photootaics to supp asiaat and asigiannguit has been considered as an aternatie to, or in combination with, wind or hdropower.

stabishment of soar photootaic instaations in reenand must tae into consideration that soar radiation changes throughout the ear.

The ange of soar radiation aries and photootaic soar panes wi, particuar in the northernmost areas, hae high production during summer and amost no production during winter. The percentage of energ from soar heating can be increased b combining soar photootaic instaations with storage options such as batteries. nother possibiit is to estabish instaations where the ange of the photootaic arra can be changed oer the ear. 7.3. It must be possible to store and combine renewable energy ne of the chaenges of renewabe energ sources such as soar and wind energ is that the energ production aries and does not foow demand. Therefore, an increased use of these energ sources woud reuire the introduction of different tpes of energ storage andor combining pants into socaed hbrid pants. s described in chapter , energstorage technoogies and hbrid pants are undergoing huge deeopment. aaaersuisut wi test different energstorage methods and hbrid pants so these technoogies can be used in the future energ supp, if the proe to be suitabe for the purpose.

nerg can be stored in seera was

 atter bans can be used to store surpus eectricit unti needed. t coud be for a er short period of time, where batteries are charged before being used again. The use of batteries is particuar reeant in combination with smaer soar photootaic instaations or hbrid pants.  reatie simpe wa to store energ is to use surpus eectricit to heat water. The hot water can be stored in batter tans and used as district heating when reuired.  drogen can be etracted b spitting water moecues into hdrogen and ogen. nder the right conditions, hdrogen can be stored in tans or pressurised bottes and subseuent transported from the production site to the pace of consumption. t present, this technoog is not considered mature for depoment on a arge scae in reenand. oweer, in the ong term, it ma contribute towards the target of renewabe energ. rior to the pring ssemb in , uissiorfiit wi 64 Solar energy prepare a business case on hydrogen in Greenland in accordance with ’s ust as with wind turbines, soar photootaic instaations can be used to suppement eisting decision during the pring ssemb of . eectricit supp produced b diese power pants and hdropower pants. uture renewabe energ proects wi continue to focus on whether the estabishment of arger soar photootaic s mentioned in the preious section, uissiorfiit has aunched a piot proect with a hbrid pant instaations might be an appropriate wa to suppement eectricit supp to towns and iages. in gaiu. The pant has photootaics, wind turbines and batter storage combined with a diese hotootaics wi be used as part of the hbrid pant in gaiu, and the possibiit of using generator. perience from the proect wi be used to determine whether this tpe of hbrid pant photootaics to supp asiaat and asigiannguit has been considered as an aternatie to, or in is a suitabe energ soution for iages. combination with, wind or hdropower. 7.4. Experience exchange with other countries

t is on natura to be inspired b, and coaborate with, other countries on energ matters. e stabishment of soar photootaic instaations in reenand must tae into consideration that can earn from their eperience, and the can earn from us. uissiorfiit wi therefore increase soar radiation changes throughout the ear. cooperation with countries that share our cimate and supp chaenges.

The ange of soar radiation aries and photootaic soar panes wi, particuar in the reenand has entered into a coaboration agreement with the aeroe sands with focus on northernmost areas, hae high production during summer and amost no production during winter. energ and the enironment. uissiorfiit echanges eperience in the energ area with the The percentage of energ from soar heating can be increased b combining soar photootaic aeroese utiit compan , which aso has ambitious targets for renewabe energ. instaations with storage options such as batteries. nother possibiit is to estabish instaations where the ange of the photootaic arra can be changed oer the ear. reenand participates in the ordic energ coaboration. s part of this coaboration, 7.3. It must be possible to store and combine renewable energy uissiorfiit is monitoring a hbrid pant piot proect on the aeroe sands. roects in reenand ne of the chaenges of renewabe energ sources such as soar and wind energ is that the can be supported b the ordic energ coaboration. energ production aries and does not foow demand. Therefore, an increased use of these energ sources woud reuire the introduction of different tpes of energ storage andor nder the auspices of the rctic ounci, uissiorfiit participates in rctic emote nerg combining pants into socaed hbrid pants. s described in chapter , energstorage etwors cadem. asa, anada, ceand, ussia and reenand a participate in the technoogies and hbrid pants are undergoing huge deeopment. aaaersuisut wi test coaboration. The aim is to disseminate nowedge on renewabe energ supp in remote areas different energstorage methods and hbrid pants so these technoogies can be used in the and echange eperience on specific proects. future energ supp, if the proe to be suitabe for the purpose.

nerg can be stored in seera was

 atter bans can be used to store surpus eectricit unti needed. t coud be for a er short period of time, where batteries are charged before being used again. The use of batteries is particuar reeant in combination with smaer soar photootaic instaations or hbrid pants.  reatie simpe wa to store energ is to use surpus eectricit to heat water. The hot water can be stored in batter tans and used as district heating when reuired.  drogen can be etracted b spitting water moecues into hdrogen and ogen. nder the right conditions, hdrogen can be stored in tans or pressurised bottes and subseuent transported from the production site to the pace of consumption. t present, this technoog is not considered mature for depoment on a arge scae in reenand. oweer, in the ong term, it ma contribute towards the target of renewabe energ. rior to the pring ssemb in , uissiorfiit wi 64 65 8. Modernising the heat supply system eat supply is an iportant ocus area with regard to ensuring sustainable deelopent in the energy sector t present heating is ostly based on oil because priately owned oilired installations are used in any places or heating t the sae tie the cost o heating is a signiicant epense or any ailies hereore the collectie heating supply ust be iproed to ensure that heating sources are eploited ore eiciently his will beneit citiens the business counity and the enironent

aalaersuisut will epand and strealine heat supply in order to reduce Greenlands dependence on iported oil and ensure stable energy prices ocally aailable heating sources ust be eploited optially his applies to both residual heat generated as a byproduct o and the signiicant heat generated by waste incineration urtherore optial eploitation o the production capacity o hydropower plants ust be ensured through increased use o electric heating ew technologies in the heating area eg heat pups will be integrated into the heat supply syste in an appropriate anner

here is a speciic need to increase ocus on eploiting waste as an energy source and to epand the inrastructure or district heating and electric heating ore citiens should also be connected to the collectie heating grid his will allow greater leibility in heating supply and the dierent types o heat can be eploited eiciently when they becoe aailable 8.1 Heat supply makes it possible to exploit different energy sources uissioriit supplies heating to places in Greenland see the ap below igure urtherore ittareariit supplies district heating to angerlussua and arsarsuahis collectie heat ro utility copanies is produced and deliered in seeral ways

 s district heating based on o esidual heat ro electricity generation at diesel plants o esidual heat ro waste incineration plants o lectric heating produced by hydropower o eating produced by eicient oilbased boilers  s electric heating either as interruptible or peranent electric heating

It is only possible to use electric heating in the hydropower towns his is because the purpose o electric heating is to eploit electricity based on renewable energy sources or heat production when there is a surplus he capacity o the hydropower plant in asiila is not enough to supply electric heating

ittareariit also supplies heat to its own airports in erlerit Inaat aarsut and ulusu

66 8. Modernising the heat supply system he possibility o connecting to district heating eat supply is an iportant ocus area with regard to ensuring sustainable deelopent in the or electric heating depends on where the energy sector t present heating is ostly based on oil because priately owned oilired custoer lies istrict heating pipes hae been installations are used in any places or heating t the sae tie the cost o heating is a laid in any urban areas but it is ore signiicant epense or any ailies hereore the collectie heating supply ust be iproed appropriate to use electric heating in other to ensure that heating sources are eploited ore eiciently his will beneit citiens the areas because it is diicult and epensie to business counity and the enironent establish district heating pipes while in principle electric heating only reuires an electricity aalaersuisut will epand and strealine heat supply in order to reduce Greenlands supply to a house he heating aps on the dependence on iported oil and ensure stable energy prices ocally aailable heating sources uissioriit website show which heating ust be eploited optially his applies to both residual heat generated as a byproduct o options they oer in the dierent areas o the electricity generation and the signiicant heat generated by waste incineration urtherore larger towns optial eploitation o the production capacity o hydropower plants ust be ensured through increased use o electric heating ew technologies in the heating area eg heat pups will be istrict heating is a leible syste as it is integrated into the heat supply syste in an appropriate anner possible to supply a district heating syste with heat ro dierent energy sources s a general here is a speciic need to increase ocus on eploiting waste as an energy source and to epand rule uissioriit uses residual heat ro the inrastructure or district heating and electric heating ore citiens should also be connected electricity plants Its secondary source is heating to the collectie heating grid his will allow greater leibility in heating supply and the dierent ro waste incineration where aailable types o heat can be eploited eiciently when they becoe aailable ollowed by district heating produced by electricity in the hydropower towns ot until Figure 22 Current capacities of heat supply plants 8.1 Heat supply makes it possible to exploit different energy sources these options hae been ruled out is heat in relation to demand, 2017 uissioriit supplies heating to places in Greenland see the ap below igure produced using oil boilers arallel to this Green: Good available capacity urtherore ittareariit supplies district heating to angerlussua and arsarsua his seeral public and priate institutions and Yellow: Limited available capacity collectie heat ro utility copanies is produced and deliered in seeral ways residences use interruptible electric heating that Red: No available capacity can be adusted depending on the current Additional details are  s district heating based on capacity aailable ro hydropower plants at:http://maps.nukissiorfiit.gl/sektorplan o esidual heat ro electricity generation at diesel plants o esidual heat ro waste incineration plants In addition to the heating sources entioned aboe heat can be suppleented by other o lectric heating produced by hydropower renewable energy installations eg solar panels and surplus heat ro anuacturing copanies o eating produced by eicient oilbased boilers or by using heat pups and wind turbines  s electric heating either as interruptible or peranent electric heating lot o heat is also produced at priately owned installations such as oilired installations his It is only possible to use electric heating in the hydropower towns his is because the purpose o applies to sites that do not hae access to district heating or electric heating and to citiens who electric heating is to eploit electricity based on renewable energy sources or heat production are not connected to the collectie heat supply in towns eat supply in these areas is alost when there is a surplus he capacity o the hydropower plant in asiila is not enough to supply eclusiely ro by oilired installations echnologies such as heat pups and solar panels are electric heating used in soe areas but only to a liited degree at present

Nukissiorfiit’s website (in Danish and Greenlandic only): wwwnuissioriitglbusiness ittareariit also supplies heat to its own airports in erlerit Inaat aarsut and ulusu relationsiernareoparningnuulangda

66 67

here is reat otential to relace oil consution used for heatin by eloitin local enery sources better

enttesenttesiures til til henholdsvis henholdsvisand below kollektivkollektiv show varmevarmethe etent frafra Nukissiorfiit to which the og differentden samledesamlede enery varmeforsning,varmeforsning, sources are usedhvor hvor de forde privateprivatecollectie anlg anlg heat ogs ogs fro indgr indgr Nukissiorfiit omom detdet and fremgr,fremgr, the total er heat varmen suly i h which grad alsoaseretaseret includes pp forrugforrug riate af afinstallations olie olie – – ikke ikke mindstmindsts is seen den den private heatprivate is larelyvarmeforsning varmeforsning based on oil esecially with reard to the riate heat suly syste

NukissiorfiitNukissiorfiitNukissiorfiit HeleAll of GrønlandGrønland Greenland

FossilFossileFossile fuels brændslerbrændsler20% HydropowerVandkraftVandkraft 20%20% 21%21%21%

AffaldsvarmeWasteAffaldsvarme heat 3%3%

HydropowerVandkraftVandkraft RestvarmeResidualRestvarme Restvarme RestvarmeResidual 55%55%55% heat6%6% 6% heat17%17% 17%

FossilFossileFossile fuels brændslerbrændsler70% 70% AffaldsvarmeAffaldsvarmeWaste heat 70% 8%8%8%

FigurFigur 23 23NukissiorfiitsNukissiorfiits varmeproduktion varmeproduktion Figur 24 Privat og offentlig varmeproduktion Figure 23 Nukissiorfiit’s heat production by FigurFigure 24 24Privat Private og and offentlig public varmeproduktion heat production fordelt på energikilder, 2015 2121 fordelt på energikilder, 2015 fordelt påpå energikilder,energikilder, 2015201521 ildeenergy rnlands source, 2015 tatistik by energy source, 2015 ildeSource: rnlands Statistics tatistik Greenland ildeSource: rnlands Statistics Greenlandtatistiktatistik

8.2.8.2.8.2. Affald AffaldEfficient skal skal utilisation udnyttesudnyttes effektivtofeffektivt waste assom an energiressource energy source DerDerhere er er et etis etdeligt considerableetdeligt potentiale potentiale otential forfor in atat otiisin optimereoptimere utilisationudnttelsen of af waste affald for tiltil eneryenergiformlenergiforml uroses Derfor Derfor herefore nsker nsker Naalakkersuisut,Naalakkersuisut,Naalakkersuisut atatwants derder ivrksttesivrksttesto launch secific konkretekonkrete initiaties tiltag og and analser analyses afaf omtoom establish derder erer ehovehov whether forfor ndringer ndringerthere is a afafneed affaldsomrdets affaldsomrdets to chane the organiseringorganisering oranisation amtidig amtidigof the waste skal areainvesteringer t the s aeii fernvarmenetfernvarmenet tie inestents gege afstningenafstningen in the district afaf varmevarmeheatin produeret produeret network willp p deincreasede grnlandske grnlandske the sale affaldsforraffaldsforr of heat roducedndingsanlg by Greenland waste incineration lants

8.3.8.3.8.3. Arbejdsgruppe ArbejdsgruppeWorking group skalskal to propose foreslåforeslå tiltaginitiatives på affaldsområdet in the waste area Naalakkersuisut nsker at nedstte en aredsgruppe, der i skal fremlgge forslag til NaalakkersuisutNaalakkersuisut nsker wants atto setnedstte u a workinen aredsgruppe, rou which der in i isskal to resentfremlgge roosals forslag for til initiativer, der kan give en foredret udnttelse af affald til energiforml aredsgruppen r alle initiativer,initiaties der for kanbetter give utilisation en foredret of waste udnttelse for enery af affald uroses til energiforml ll releant stakeholders aredsgruppen resonsible r alle relevantefor the waste aktrer area med should ansvar articiate for affaldsomrdet in the workin deltage rou: kommunerne, the unicialities Departementet the inistry for Natur of relevante aktrer med ansvar for affaldsomrdet deltage kommunerne, Departementet for Natur oNatureg il, and Departementet nironent thefor inistryinanser ofog inance katter, the Departementet inistry of ndustry for rh andverv nery og nergi as well samt as og il, Departementet for inanser og katter, Departementet for rhverv og nergi samt NukissiorfiitNukissiorfiit Nukissiorfiit

ffaldsomrdetoday waste is oraniseder i dag organiseretin such a way sdan, that unicialitiesat kommunerne are strresonsible for indsamling, for collectin sortering sortin og ffaldsomrdet er i dag organiseret sdan, at kommunerne str for indsamling, sortering og afrndingand incineratin af wasteaffaldet Nukissiorfiit Nukissiorfiit urchases aftager waste heataffaldsvarme fro unici fraal wastede kommunaleincineration afrnding af affaldet Nukissiorfiit aftager affaldsvarme fra de kommunale affaldsforrndingsanlg i Nuuk, isimiut, lulissat, aorto og aniitso Nukissiorfiit affaldsforrndingsanlg i Nuuk, isimiut, lulissat, aorto og aniitso Nukissiorfiit og kommunerne er i lende dialog om afstning af affaldsvarme Der kan imidlertid opns og kommunerne er i lende dialog om afstning af affaldsvarme Der kan imidlertid opns fordeleource: tatistics Greenland his is a conseratie estiate as there is no detailed inforation about heat fordeleroduction fro riately owned oilfired installations etc 68 ilde rnlands tatistik Der er tale om et forsigtigt skn, da der ikke findes detalerede oplsninger om varmeproduktion ilde rnlands itatistik private oliefr Der er mv tale om et forsigtigt skn, da der ikke findes detalerede oplsninger om varmeproduktion Nukissiorfiit er iikke private involveret oliefr i mvafstning af affaldsvarme i asiaat og delvist i lulissat, da aasuitsup ommunia disse Nukissiorfiit steder afstter er ikke involveretvarmen via i afstninget separat, af kommunalt affaldsvarme eet i fernvarmenetasiaat og delvist i lulissat, da aasuitsup ommunia disse steder afstter varmen via et separat, kommunalt eet fernvarmenet lants in Nuuk isiiut lulissat aorto and aniitsoNukissiorfiit and the unicialities are here is reat otential to relace oil consution used for heatin by eloitin local enery in reular dialoue on sale of waste heat oweer closer cooeration or reoranisation ay be sources better an adantae in both the short and lon ters for eale transferrin oeration of waste incineration to Nukissiorfiit iures and below show the etent to which the different enery sources are used for collectie heat fro Nukissiorfiit and the total heat suly which also includes riate installations n the short ter the daytoday oeration can be otiised so that waste incineration is ore s is seen heat is larely based on oil esecially with reard to the riate heat suly syste adated to the current need for heat n the lon ter it can be lanned where in Greenland it would be ost aroriate to use the waste for enery suly and inestents in the waste and Nukissiorfiit All of Greenland enery area can be coordinated to suort an oerall stratey for the area

Fossil fuels 20% Hydropower 8.4. District heating networks for optimised exploitation of waste heat 21% n soe laces durin the suer it is not ossible for Nukissiorfiit to sell all the heat roduced at waste incineration lants on other thins this is because in soe laces the district Waste heat 3% heatin network restricts the nuber of consuers to who heat can be distributed Nukissiorfiit Hydropower Residual is aware of this issue Residual 55% heat 6% heat 17% Fossil fuels urrently Nukissiorfiit has two secific roects in Nuuk and isiiut eected to be coleted in 70% Waste heat the eriod : 8%

 he waste incineration lant in Nuuk is only connected to one of the towns four district Figure 23 Nukissiorfiit’s heat production by Figure 24 Private and public heat production energy source, 2015 by energy source, 201521 heatin networks Nukissiorfiit eects to connect two district heatin networks to ensure Source: Statistics Greenland Source: Statistics Greenland hiher sales fro the waste incineration lant  n isiiut Nukissiorfiit and eata ounia hae enaed in cooeration on connectin two of the towns three district heatin networks in connection with buildin 8.2. Efficient utilisation of waste as an energy source new ublic indoor swiin ool his will ensure the ossibility of hiher sales fro the here is considerable otential in otiisin utilisation of waste for enery uroses herefore waste incineration lant and enable the waste incineration lant to suly heat to the Naalakkersuisut wants to launch secific initiaties and analyses to establish whether there is a ublic indoor swiin ool need to chane the oranisation of the waste area t the sae tie inestents in the district heatin network will increase the sale of heat roduced by Greenland waste incineration lants 8.5. Expansion of the collective heating network and connection of more 8.3. Working group to propose initiatives in the waste area consumers Naalakkersuisut ais to lace a reater share of the heat suly with Nukissiorfiit t the sae Naalakkersuisut wants to set u a workin rou which in is to resent roosals for tie the collectie heat suly syste will be eanded and ore heat custoers will be initiaties for better utilisation of waste for enery uroses ll releant stakeholders resonsible for the waste area should articiate in the workin rou: the unicialities the inistry of connected riate heatin fro oilfired installation will be relaced by district heatin or electric Nature and nironent the inistry of inance the inistry of ndustry and nery as well as heatin where this is aroriate fro a socioeconoic ersectie his will ake it easier to Nukissiorfiit ensure that residual heat waste heat and hydroowerbased heat are be used efficiently before usin oil oday waste is oranised in such a way that unicialities are resonsible for collectin sortin and incineratin waste Nukissiorfiit urchases waste heat fro unicial waste incineration

Nukissiorfiit is not inoled in the sale of waste heat in asiaat and are only artially inoled in the sale in lulissat his is because in these towns aasuitsu ounia sells heat ia a searate unicially owned district heatin ource: tatistics Greenland his is a conseratie estiate as there is no detailed inforation about heat network roduction fro riately owned oilfired installations etc 68 69 8.6. A more efficient and consolidated heat supply system here are currently seeral layers in the heatin sector Nukissiorfiit and ittarfearfiit are resonsible for suly in each their area oreoer in any lare housin colees heat is roduced fro elfGoernentowned heatin stations that are adinistered by different layers such as N and elfGoernent housin deartents eat is riarily based on oil and is chiefly consued by oilfired installation in riate hoes

ransferrin heatin centres to Nukissiorfiit can otiise use of indiidual installations and Nukissiorfiit can ensure reater coordination to eloit the heatin resources aailable in the best ossible way District heatin and interrutible electric heatin infrastructure will be eanded he infrastructure will be eanded to ensure the best ossible eloitation of heatin resources ore district heatin networks will be established and the electricity rid will be reinforced to better enable use of interrutible electric heatin

Nukissiorfiit is continuously deeloin the heat suly network here is currently stron focus on lulissat where there is a reat otential for usin additional hydroower for the heat suly art of the roect to establish hydroower suly has also included reinforcin the electricity rid for interrutible electric heatin as well to eand the district heatin network here is also still a need for ore infrastructure for heatin suly in Nuuk oweer it is anticiated that surlus heat fro the hydroower lant will radually becoe liited until a ossible eansion of the hydroower suly

nce the eansion of the catchent area for the orlortorsua hydroower lant that sulies aorto and Narsa has been ileented inestents will also be ade in the district heatin network and in reinforcin the electricity rid his ay also be necessary in asiila if the hydroower suly syste is eanded considerably

osts can be ery hih articularly costs for the district heatin network herefore the conditions at each location will be assessed before deterinin whether it is rofitable to inest in the necessary infrastructure for heat

n future focus will also be on whether residual heat fro electricity eneration can be used in sall towns and illaes where residual heat is currently not bein utilised n Nukissiorfiit will eaine the oortunities for increased eloitation of residual heat in sall towns and illaes

n soe laces it will not be rofitable to establish a district heatin suly syste his ay be because residual heat uantities are liited andor households are so scattered that inestent in district heatin networks is not financially adantaeous n such cases Nukissiorfiit will

70 8.6. A more efficient and consolidated heat supply system eaine whether it is beneficial only to suly nearby lare buildins with district heatin for here are currently seeral layers in the heatin sector Nukissiorfiit and ittarfearfiit are eale shos or serice houses resonsible for suly in each their area oreoer in any lare housin colees heat is 8.7. Connection of more households to collective heat supply roduced fro elfGoernentowned heatin stations that are adinistered by different here is reat otential to increase the nuber of heatin consuers connected to the collectie layers such as N and elfGoernent housin deartents eat is riarily based on oil and heat suly n any towns een thouh in ost areas district heatin networks hae been is chiefly consued by oilfired installation in riate hoes established or electricity rids for electric heatin hae been reinforced any households hae

yet to be connected he ore consuers that are connected to the collectie heat suly the ransferrin heatin centres to Nukissiorfiit can otiise use of indiidual installations and ore Nukissiorfiit will be able to otiise eloitation of the heatin resources aailable Nukissiorfiit can ensure reater coordination to eloit the heatin resources aailable in the best

ossible way District heatin and interrutible electric heatin infrastructure will be eanded Naalakkersuisut will strie to connect ore households to collectie heat suly his will be he infrastructure will be eanded to ensure the best ossible eloitation of heatin resources achieed by ore district heatin networks will be established and the electricity rid will be reinforced to better enable use of interrutible electric heatin  roidin ore inforation about connection ossibilities  roidin financial incenties for connection Nukissiorfiit is continuously deeloin the heat suly network here is currently stron focus on  tihtenin reuireents for the tye of heatin to be used in the indiidual buildins lulissat where there is a reat otential for usin additional hydroower for the heat suly art of the roect to establish hydroower suly has also included reinforcin the electricity rid for he usual rocedure for connection to district heatin or electric heatin is that the custoer interrutible electric heatin as well to eand the district heatin network here is also still a alies to Nukissiorfiit for connection and that the costs of connection are coered by the need for ore infrastructure for heatin suly in Nuuk oweer it is anticiated that surlus custoer his ay be a sinificant financial burden for a household and is undoubtedly a heat fro the hydroower lant will radually becoe liited until a ossible eansion of the contributory factor to any eole not bein connected to the collectie heat syste hydroower suly Naalakkersuisut will eaine the ossibilities of settin aside funds to coer the connection of riate consuers to the district heatin network so that connection does not deend on the nce the eansion of the catchent area for the orlortorsua hydroower lant that sulies indiidual consuers financial situation n this resect inforation caains will be launched aorto and Narsa has been ileented inestents will also be ade in the district heatin on the ossibilities of bein connected to district heatin and electric heatin network and in reinforcin the electricity rid his ay also be necessary in asiila if the hydroower suly syste is eanded considerably Nukissiorfiit can reuire that custoers are connected to interrutible electric heatin and district heatin in the hydroowered towns n such cases Nukissiorfiit is resonsible for establishin osts can be ery hih articularly costs for the district heatin network herefore the and ayin for the custoers connection euireents for connection will not be a financial conditions at each location will be assessed before deterinin whether it is rofitable to inest in burden for the indiidual consuer but rather an adantae for society as well as for consuers the necessary infrastructure for heat herefore Nukissiorfiit will continue to ake use of the ossibility to increase connection to the collectie heat suly n future focus will also be on whether residual heat fro electricity eneration can be used in sall towns and illaes where residual heat is currently not bein utilised n Nukissiorfiit s an additional initiatie Naalakkersuisut will recoend all ublic contractin authorities and will eaine the oortunities for increased eloitation of residual heat in sall towns and other authorities that the recoendations for the tye of heatin in a secific area are included illaes in local deeloent lans etc oreoer Naalakkersuisut will recoend that buildin erits only be ranted for roects where the recoended tye of heatin is used n soe laces it will not be rofitable to establish a district heatin suly syste his ay be because residual heat uantities are liited andor households are so scattered that inestent in district heatin networks is not financially adantaeous n such cases Nukissiorfiit will ee arliaent eulation no of ctober on andatory connection to electric boilers (with later aendents) and Nukissiorfiit ters of sale and deliery

70 71 8.8. Individual settlement of heat oday heatin consution is aid collectiely for any heatin consuers his eans that the housing administrator prepares a bill for each housing department’s total heating consumption, in which eenses are slit eually between the residents or are slit accordin to a secific cost allocation key his eans that the indiidual resident risks hain to ay for their neihbours hih consution

here is no doubt that the ost reasonable solution is that the indiidual consuer only ays for their own consution oreoer indiidual settleent eans that the indiidual consuer will hae a reater incentie to sae enery

ransitionin fro collectie to indiidual settleent eans that heatin consuers who sae enery will sae oney each onth while the bill will increase for consuers who continue to hae a hih leel of consution

ro Naalakkersuisut will start installin indiidual heat eters in the hoes of any heatin consuers who are currently billed collectiely s a first ste at the autun arliaentary ssebly Naalakkersuisut will resent a roosal for aendin the nery uly eulation authorisin Naalakkersuisut to reuire the installation of indiidual heat eters in all rental roerties that are directly or indirectly owned ublicly ownedhe roosal is a followu to the recoendations in the reort on indiidual heat eters which on the basis of an natsisartut decision at the srin arliaentary ssebly was reared by Naalakkersuisut in

nstallation of indiidual heat eters will take lace radually and only in the roerties (around flats) that hae been technically reared for installation n soe older buildins iin has not been installed as searate systes in each flat ere this will reuire lare inestents in order to searate heat suly for indiidual flats before bein able to introduce indiidual heatin bills he reort on indiidual heat eters showed that installation of indiidual heat eters in such laces will not be rofitable herefore efforts will concentrate on hoes that hae been technically reared for indiidual heat eters oreoer additions to the buildin reulations should ensure that indiidual readin of electricity water and heatin consution is ossible in all new blocks of flats 8.9. Promotion of new technologies for heat supply New renewable enery technoloies in the heatin area are deeloin raidly and around Greenland indiiduals and businesses are inestin in for eale heat us and solar anels

his includes rental roerties adinistered by N and the unicially owned housin association serit n addition rental roerties owned by llluut and other elfGoernentowned coanies will be coered by the roosal he roosal does not coer riately owned rental roerties abll () (reort on indiidual heat eters)

72 8.8. Individual settlement of heat for heating eelopments must be monitored closel, so that technologies that turn out to be oday heatin consution is aid collectiely for any heatin consuers his eans that the appropriate to use in reenland can be integrated in the heat suppl sstem, hen this seems housing administrator prepares a bill for each housing department’s total heating consumption, in technicall and socioeconomicall appropriate which eenses are slit eually between the residents or are slit accordin to a secific cost allocation key his eans that the indiidual resident risks hain to ay for their neihbours hih eat pumps can be a useful technolog for reenland here are arious tpes and sies aailable consution arge heat pumps ill be able to suppl heat through eisting district heating netors

here is no doubt that the ost reasonable solution is that the indiidual consuer only ays for uissiorfiit epects to complete pilot proects ith different tpes of large heat pumps n , a their own consution oreoer indiidual settleent eans that the indiidual consuer will pilot proect as initiated using geothermal heat from bedroc to heat the uissiorfiit hae a reater incentie to sae enery headuarters in uu urthermore, uissiorfiit epects to establish a heat pump test facilit in isimiut ith seaater as the heatgenerating medium, and a test facilit in arsa ith soil as the ransitionin fro collectie to indiidual settleent eans that heatin consuers who sae heatgenerating medium he obectie is to eamine hether the concepts are technologicall, enery will sae oney each onth while the bill will increase for consuers who continue to economicall and enironmentall iable, and hether heat pumps can be used in the rctic hae a hih leel of consution region

ro Naalakkersuisut will start installin indiidual heat eters in the hoes of any heatin consuers who are currently billed collectiely s a first ste at the autun arliaentary ssebly Naalakkersuisut will resent a roosal for aendin the nery uly eulation authorisin Naalakkersuisut to reuire the installation of indiidual heat eters in all rental roerties that are directly or indirectly owned ublicly ownedhe roosal is a followu to the recoendations in the reort on indiidual heat eters which on the basis of an natsisartut decision at the srin arliaentary ssebly was reared by Naalakkersuisut in

nstallation of indiidual heat eters will take lace radually and only in the roerties (around flats) that hae been technically reared for installation n soe older buildins iin has not been installed as searate systes in each flat ere this will reuire lare inestents in order to searate heat suly for indiidual flats before bein able to introduce indiidual heatin bills he reort on indiidual heat eters showed that installation of indiidual heat eters in such laces will not be rofitable herefore efforts will concentrate on hoes that hae been technically reared for indiidual heat eters oreoer additions to the buildin reulations should ensure that indiidual readin of electricity water and heatin consution is ossible in all new blocks of flats 8.9. Promotion of new technologies for heat supply New renewable enery technoloies in the heatin area are deeloin raidly and around Greenland indiiduals and businesses are inestin in for eale heat us and solar anels

his includes rental roerties adinistered by N and the unicially owned housin association serit n addition rental roerties owned by llluut and other elfGoernentowned coanies will be coered by the roosal he roosal does not coer riately owned rental roerties abll () (reort on indiidual heat eters)

72 73 9. Modernisation of the water supply system 9.1. The water supply system today and up to 2030 lean drining ater is an important prereuisite for public health and social deelopment in reenland his sector plan sets obecties that the ater suppl sstem must meet in the period coered b this sector plan ater suppl in reenland is currentl proided b uissiorfiit and ittarfearfiit uissiorfiit currentl supplies drining ater to tons and illages he ater suppl sstem is primaril based on the etraction of surface ater from laes and riers, and on of seaater and melting of ice floes 9.2. Purpose stable ater suppl ith clean drining ater has high priorit reenland generall has sufficient highualit ater to coer current and future needs for drining ater oeer, there are local differences in the accessibilit and suppl capacit n seeral places, ater resources are so good that ater is in ecess here is potential to eploit this commerciall in the future, for eample, b eporting bottled or bul ater to places around the orld here there is a shortage of ater he business opportunities hae been described in a separate sector plan concerning aalaersuisuts strateg for eports of ice and ater in the ears to come

his sector plan for ater sets the strateg obecties for the period coered b the plan he obecties ill help ensure good and stable ater suppl ith a high degree of securit of suppl oreoer, the ill ensure highualit and sufficient ater for households based on efficient utilisation of the ra ater resources aailable areful planning ill also ensure optimal organisation as ell as targeted reinestment and epansion that tae into account socio economic conditions, including intelligent epansion of the ater suppl sstem ith regard to business plans and deelopment 9.3. Security of supply ecure ater suppl ith clean drining ater is crucial for aalaersuisut ublic authoritiesand ittarfearfiit are obligated b la to ensure this, and the are obligated to protect ra ater resources and the ater suppl sstem onfidence in the ualit of drining ater and high securit of suppl are crucial for deeloping the surrounding communit herefore, efforts ill be targeted at reducing the ris of contaminating ra ater resources and drining ater urthermore, it must be ensured that there is no oerutilisation of the resources, as this ma compromise the securit of suppl in the long term 9.4. Resource-efficient supply he ater suppl sstem ill be made more efficient through continuous epansion and renoation he purpose of this is to optimise the energ used throughout the entire process, from the ra ater source to a consumer tapping ater, and to reduce the energ consumption for pumps, and not least reduce loss during the entire process

arliament egulation no of oember on ater suppl

74 9. Modernisation of the water supply system n important goal is to reduce all riss related to an contamination of drining ater supplied to the consumer hen renoating the ater suppl sstem, loss of ater and energ consumption 9.1. The water supply system today and up to 2030 can be reduced b using the most recent products to improe the distribution netor he lean drining ater is an important prereuisite for public health and social deelopment in transition from old cast iron pipelines to ne uptodate suppl pipelines ill reduce the loss of reenland his sector plan sets obecties that the ater suppl sstem must meet in the period ater due to leaage coered b this sector plan ater suppl in reenland is currentl proided b uissiorfiit and ittarfearfiit uissiorfiit currentl supplies drining ater to tons and illages he 9.5. Water supply in towns ater suppl sstem is primaril based on the etraction of surface ater from laes and riers, ll tons in reenland hae good aterors, and some tons hae relatiel ne and er and on desalination of seaater and melting of ice floes modern aterors he compleit has generall been adapted to the ra ater resource that is 9.2. Purpose used to suppl drining ater rining ater is distributed using seeral methods he best and stable ater suppl ith clean drining ater has high priorit reenland generall has most idespread method is suppl ia a ater main oned and operated b uissiorfiit sufficient highualit ater to coer current and future needs for drining ater oeer, there onsumers connect their on serice pipeline to the ater main are local differences in the accessibilit and suppl capacit n seeral places, ater resources are so good that ater is in ecess here is potential to eploit this commerciall in the future, for urthermore, in seeral places, ater is deliered ia ater trucs as man homeoners hae eample, b eporting bottled or bul ater to places around the orld here there is a shortage their on installation ater tan ul ater delier is an epensie and resourceintensie of ater he business opportunities hae been described in a separate sector plan concerning solution for customers as ell as for uissiorfiit aalaersuisuts strateg for eports of ice and ater in the ears to come ul ater delier increases the ris of ater contamination both hen filling up the ater truc his sector plan for ater sets the strateg obecties for the period coered b the plan he and hen filling up the homeoners tan n future, focus ill be on increasing the percentage of obecties ill help ensure good and stable ater suppl ith a high degree of securit of suppl ater distributed ia pressurised ater pipelines and on reducing the number of bul ater oreoer, the ill ensure highualit and sufficient ater for households based on efficient delieries utilisation of the ra ater resources aailable areful planning ill also ensure optimal organisation as ell as targeted reinestment and epansion that tae into account socio onsumers can collect drining ater at filling houses installed at locations throughout the economic conditions, including intelligent epansion of the ater suppl sstem ith regard to tonillage n addition to sering the drining ater suppl sstem, the ater mains are also business plans and deelopment part of the emergenc response sstem, as fire hdrants hae been established in selected places 9.3. Security of supply around tons in collaboration ith the fire authorities ecure ater suppl ith clean drining ater is crucial for aalaersuisut ublic authoritiesand ittarfearfiit are obligated b la to ensure this, and the are obligated to uissiorfiits goal is to secure stable and highualit ater suppl and highualit ater for protect ra ater resources and the ater suppl sstem onfidence in the ualit of drining residents and the business communitfishing industr in the indiidual tons oreoer, the goal ater and high securit of suppl are crucial for deeloping the surrounding communit herefore, is to secure sufficient drining ater for households, production, etc, and to proide confidence efforts ill be targeted at reducing the ris of contaminating ra ater resources and drining that drining ater supplied b public utilities is of high ualit inall, ater ill be supplied at ater urthermore, it must be ensured that there is no oerutilisation of the resources, as this the loest possible costs ma compromise the securit of suppl in the long term 9.4. Resource-efficient supply he ater suppl sstem in tons ill be improed through ongoing and fleible inestment plans he ater suppl sstem ill be made more efficient through continuous epansion and t is ital that inestments in the drining ater suppl sstem are continuousl ealuated from renoation he purpose of this is to optimise the energ used throughout the entire process, from source to consumer to ensure the most appropriate inestments in ne capacit etc and the ra ater source to a consumer tapping ater, and to reduce the energ consumption for renoations his includes maintaining a robust and stable ater suppl he inestment plans ill pumps, and not least reduce loss during the entire process contribute to deeloping ater suppl here this benefits residents as ell as the business communit, and here the need is greatest in terms of local and regional deelopment

arliament egulation no of oember on ater suppl

74 75 9.6. Water supply in villages he design of ater suppl facilities and ater suppl netors in illages is similar to that in tons, the onl difference being that the are smaller in scale he oerall increasing ualit of life in reenland has increased the demand for clean drining ater s a conseuence, seeral areas are challenged ith regard to securing a stable, robust and high ualit of ater

ost illages do not hae pressurised ater pipes in the form of ater mains to hich residents can connect a serice pipeline esidents collect drining ater for their household etc from filling houses in the illage here is onl one illage in reenland hich receies ater ia bul ater delier

uring the summer, summer distribution netors are established in some tons and illages hese summer netors distribute drining ater from the aterors to the ater tan in the indiidual propert he summer netors pose challenges ith regard to deliering highualit drining ater, because the drining ater stas longer in the pipes due to lo consumption ear can also gie rise to leas in the summer netors, resulting in ater loss and thereb poorer ualit of ater

he ater suppl sstem in illages ill be improed through inestments in step ith current and future suppl demands and the epected demographic deelopment oreoer, inestments ill be made here the create the greatest socioeconomic gains enoation of the ater suppl sstem in illages ill result in a higher degree of standardisation, modularisation and automation utomation of aterors in illages ill lead to better monitoring of ater suppl and ater ualit, as non from the tons hlorination of drining ater in illages is currentl onl alloed in eceptional cases due to concerns about incorrect dosages tandardisation and automatic monitoring ill help preent some of the riss associated ith chlorination he inestments are clearl epected to hae a significant effect on the number of das on hich ater has to be boiled, thereb reducing problems ith poor ater ualit

he aim is to ensure good and stable ater suppl and highualit ater for residents in illages, including sufficient uantities of drining ater for households and confidence that the drining ater is of high ualit

he goal of better ater suppl for the business communitfishing industr in illages inoles securing a stable ater suppl and highualit drining ater oordination beteen releant parties is important before deciding hether to establish aterconsuming industries in illages t must be ensured that the industr can be established at localities here it maes most sense for eerone

76 9.6. Water supply in villages ore specificall, there is a need for accessible and good ra ater resources hich can be he design of ater suppl facilities and ater suppl netors in illages is similar to that in etracted ithout considerable costs or ris of depleting the ra ater resource tons, the onl difference being that the are smaller in scale he oerall increasing ualit of life 9.7. Water protection zones in reenland has increased the demand for clean drining ater s a conseuence, seeral areas he ualit of ater from the ra ater resources is generall high, hoeer, it is important to are challenged ith regard to securing a stable, robust and high ualit of ater protect ra ater resources in order to ensure highualit ater no and in the future

ost illages do not hae pressurised ater pipes in the form of ater mains to hich residents n order to protect laes and riers used to etract drining ater from contamination, ater can connect a serice pipeline esidents collect drining ater for their household etc from filling protection ones hae been established ater protection ones are determined b the houses in the illage here is onl one illage in reenland hich receies ater ia bul ater topographic catchment area for ater resources roisions hae been laid don on the actiities delier permitted ithin the ater protection ones

uring the summer, summer distribution netors are established in some tons and illages n a modern reenland societ, ater protection ones are constantl being challenged, not least hese summer netors distribute drining ater from the aterors to the ater tan in the due to the increase in leisure actiities in the countrside his applies to locals as ell as to the indiidual propert he summer netors pose challenges ith regard to deliering highualit many tourists using Greenland’s unique nature. In addition, water protection zones are being drining ater, because the drining ater stas longer in the pipes due to lo consumption challenged b the epansion of tons and illages, because residential buildings are moing closer ear can also gie rise to leas in the summer netors, resulting in ater loss and thereb to the ater protection one poorer ualit of ater

herefore, targeted efforts are necessar to inform local residents and tourists about the purpose he ater suppl sstem in illages ill be improed through inestments in step ith current and of ater protection ones and the associated restrictions oreoer, ne ater resources should future suppl demands and the epected demographic deelopment oreoer, inestments ill be identified ell aa from residential areas be made here the create the greatest socioeconomic gains enoation of the ater suppl sstem in illages ill result in a higher degree of standardisation, modularisation and automation 9.8 Water production and distribution today utomation of aterors in illages ill lead to better monitoring of ater suppl and ater uissiorfiit deliers drining ater to settlements, and ittarfearfiit deliers drining ater ualit, as non from the tons hlorination of drining ater in illages is currentl onl to angerlussua, arsarsua and ulusu – hoeer, the latter is being transferred to alloed in eceptional cases due to concerns about incorrect dosages tandardisation and uissiorfiit uperision of the ater ualit is currentl carried out b the reenland elf automatic monitoring ill help preent some of the riss associated ith chlorination he oernments enironmental department under the inistr of ature and nironment inestments are clearl epected to hae a significant effect on the number of das on hich ater has to be boiled, thereb reducing problems ith poor ater ualit ater suppl is primaril based on the etraction of surface ater from laes, springs and riers urthermore, at some localities seaater is etracted for drining ater, and in some places, he aim is to ensure good and stable ater suppl and highualit ater for residents in illages, ater is supplied from ells or ell drillings here are local differences in the ater resources including sufficient uantities of drining ater for households and confidence that the drining aailable he sie of the ater resource is limited b precipitation, location of laes and riers, or ater is of high ualit distance to the ater resource n areas ith limited ater resources, it ma be necessar to etract seaater in order to suppl drining ater uppl of ater using seaater is through he goal of better ater suppl for the business communitfishing industr in illages inoles desalination plants here seaater is conerted into freshater through reerse osmosis sing securing a stable ater suppl and highualit drining ater oordination beteen releant desalination plants is er costintensie and energintensie parties is important before deciding hether to establish aterconsuming industries in illages t must be ensured that the industr can be established at localities here it maes most sense for eerone natsisartut ct no of oember on enironmental protection utaarmiut and aaaat hae public electricit suppl, but not public ater suppl n illages ithout a ater suppl sstem, ater is tpicall supplied through hosepipes during the summer, and b manual suppl from laes, springs and riers as ell as b melting ice and sno during the inter

76 77 In aanaaq, were tere are limited raw water resources, or part o te year, drining water is produced by collecting and melting ice. elting ice or drining water is ery energyintensie, and tis metod is callenged because te season or collecting ice is becoming sorter as a consequence o climate cange. uissioriit is currently eamining alternatie possibilities or supplementing te water supply in order to pase out ice melting in aanaaq.

reatment o raw water rom te resource is troug dierent steps. irst, te water is iltered. is remoes larger particles. In some places, te substance polyaluminium cloride is added to te water beore iltration. is elps bind te organic material in te water, so tat te organic material precipitates and can be iltered out. ter iltration, cal or soda is oten added to regulate te p alue. e water is pumped onwards or ultraiolet radiation. radiation ills any microbiological contaminants in te water. ter radiation, clorine is added as an additional ygiene barrier. lorine is generally only added in towns. lorination o drining water in illages requires approal rom te autorities. lorination is not allowed in illages because te autorities want to aoid te ris o incorrect dosages.

roblems wit water treatment can arise particularly around periods o taw, as canges may occur in te content o sediments and organic material in te raw water. is is caused by considerable quantities o meltwater running into te drining water laes. In tese periods, tis imposes etra ig demands on te operation o waterwors to ensure deliery o clean drining water. icrobiological parameters are oten to blame or lac o compliance wit quality parameters.

is gies rise to speciic requirements or te security o supply in towns wit growing populations. In order to maintain a good leel o security o supply and to supply igquality drining water, it is important tat te distribution networ is continuously renoated and epanded. In towns and illages wit alling populations, it is important to adapt te networ to demand, so tat renoation wors are dimensioned to meet water demand. o aciee te obectie o ensuring robust and stable water supply, reducing water loss and ensuring clean ig quality drining water, te water autorities sould prepare and continuously reise te plans or renoation o water pipes. enoation and targeted epansion o mains and pipes will ensure consumers ig security o supply and a ig degree o drining water saety, reduce ow long water stays in te pipes and maintain a low water loss.

In towns tat ae a good and epanded distribution networ, te obectie is to reduce deliery by water trucs to te properties tat are currently not connected to te networ. asing out o bul water deliery will improe te water supply and water quality. is will also result in inancial saings and elp te water supply system to be operated in a socioeconomically responsible and sustainable manner.

78 In aanaaq, were tere are limited raw water resources, or part o te year, drining water is 9.9.9.9. Water Vandforbrug consumption produced by collecting and melting ice. elting ice or drining water is ery energyintensie, and otal water consumption as been decreasing oer te past decade. igure sows te tis metod is callenged because te season or collecting ice is becoming sorter as a deelopment rom to . onsumption o water by agriculture and industry as decreased consequence o climate cange. uissioriit is currently eamining alternatie possibilities or in particular, wereas consumption by ouseolds as been sligtly increasing. is increase in supplementing te water supply in order to pase out ice melting in aanaaq. consumption by ouseolds is liely due to people moing rom illages into towns. ost towns ae piped water, and eperience sows tat tis increases consumption. reatment o raw water rom te resource is troug dierent steps. irst, te water is iltered.

is remoes larger particles. In some places, te substance polyaluminium cloride is added to Households te water beore iltration. is elps bind te organic material in te water, so tat te organic Households Trade and service material precipitates and can be iltered out. ter iltration, cal or soda is oten added to Trade Agriculture and and service regulate te p alue. e water is pumped onwards or ultraiolet radiation. radiation industry ills any microbiological contaminants in te water. ter radiation, clorine is added as an Agriculture and industry additional ygiene barrier. lorine is generally only added in towns. lorination o drining water in illages requires approal rom te autorities. lorination is not allowed in illages because te autorities want to aoid te ris o incorrect dosages.

roblems wit water treatment can arise particularly around periods o taw, as canges may occur in te content o sediments and organic material in te raw water. is is caused by 3 considerable quantities o meltwater running into te drining water laes. In tese periods, tis FigureFigur 2525 ConsumptionForbrug af drikkevand of drinking 2004-2015, water 2004 m3 -2015, m ource tatistics Greenland imposes etra ig demands on te operation o waterwors to ensure deliery o clean drining kilde: Grønlands Statistik water. icrobiological parameters are oten to blame or lac o compliance wit quality rom , tere as been a all in consumption by agriculture and industry. e all parameters. primarily too place between and . e speciic reason or tis is not nown,

but te all in may be due to a decline in actiities as a consequence o te global is gies rise to speciic requirements or te security o supply in towns wit growing inancial crisis. ere is no clear eplanation to te all in , but it may be attributable to populations. In order to maintain a good leel o security o supply and to supply igquality industrys ocus on te consumption o resources as part o – producing more sustainably, drining water, it is important tat te distribution networ is continuously renoated and particularly in te ising industry. oweer, in , consumption o drining water by te ising epanded. In towns and illages wit alling populations, it is important to adapt te networ to industry increased. is is attributable to increased irst sale, particularly in t e nortern regions. demand, so tat renoation wors are dimensioned to meet water demand. o aciee te is trend is epected to continue oer te net ew years. obectie o ensuring robust and stable water supply, reducing water loss and ensuring clean ig 9.10. Aktuel forsyningskapacitet på de enkelte lokaliteter quality drining water, te water autorities sould prepare and continuously reise te plans or 9.10. Current supply capacity at individual localities renoation o water pipes. enoation and targeted epansion o mains and pipes will ensure igure sows te status o te current water production capacity or eac settlement status at consumers ig security o supply and a ig degree o drining water saety, reduce ow long te end o supplied by uissioriit. e status is indicated by red, yellow or green  RØD: Betyder at der enten ikke er forsyningskapacitet eller at råvandsressourcerne er water stays in te pipes and maintain a low water loss.  begrænset, så der ikke er noget overskud til at kunne levere yderligere drikkevand.

In towns tat ae a good and epanded distribution networ, te obectie is to reduce deliery by water trucs to te properties tat are currently not connected to te networ. asing out o bul water deliery will improe te water supply and water quality. is will also result in inancial saings and elp te water supply system to be operated in a socioeconomically responsible and sustainable manner.

78 79 o 9.12. Sammenfatning om den generelle vandforsyningssituation  o  Figure 26 Current water supply capacities in o relation to demand, end of 2016 ource uissioriit, ttpmaps.nuissioriit.glsetorplan 9.13. Vandforsyning frem mod 2030 9.11. Energy consumption for water production e production o drining water includes seeral actors. aw water is etracted rom seeral dierent sources, suc as laes and riers, wells or te sea. e etracted water is ten transported or treatment at a waterwors using dierent metods o transport. In some areas, raw water is graitated ia water mains to te waterwors. In oter areas, raw water is pumped directly to te waterwors or a designated raw water tan. In seeral areas, it is also necessary to protect water rom reezing in winter. o ensure tis, electrical antireeze cables are installed on te inside or outside o te water main.

m3 e most costintensie and energydemanding metod or producing driningwater is reerse 4.500.000 osmosis. In reerse osmosis, saltwater is pressed troug a ilter, tereby remoing salt and 4.000.000 impurities. e metod is epensie and energyintensie because it requires large pumps tat can 3.500.000 3.000.000 supply ig pressure. oreoer, te seawater must be eated irst. e process o producing 2.500.000 drining water using reerse osmosis wastes a lot o water compared wit te amount o water 2.000.000 produced. eerse osmosis plants are typically used in illages located on islands wit limited raw 1.500.000 water resources or were te reswater laes are located far away from a town’s or village’s 1.000.000 waterwors. ey are also used as emergency installations. 500.000 0 2014 2016 2018 2020 2022 2024 2026 2028 2030 Figur 27 Fremskrivning af vandforbrug fordelt på byer og bygder, 2014-2030

80 o 9.12. SummarySammenfatning of the water om den supply generelle situation vandforsyningssituation ver te ast several years focs as een on secring a stale and rost water sly tat can rovide good ality drining water for consmers and tis as led to significantly redcing te nmer of days on wic water as to e oiled e to te increasing nmer of torists and sers of natre raw water resorces are nder ressre oreover water rotection ones close to te eriery of towns are also often t nder ressre wen towns grow o address tis ressre on te raw water resorces it is  imortant tat in te eriod covered y tis sector lan efforts are targeted at information camaigns and osting signs to increase awareness of drining water sorces and rotection of raw water resorces o ater sly to te fiseries sector gives rise to local callenges in areas wit limited raw water resorces or limited waterwors caacity or tis reason all new activities reire targeted  coordination etween issiorfiit and te fiseries sector efore new ildings or eansions are lanned Figure 26 Current water supply capacities in o relation to demand, end of 2016 enovation of water sly installations will contrite to secring good secrity of sly and to ource uissioriit, redcing energy consmtion er m water ttpmaps.nuissioriit.glsetorplan 9.13. WaterVandforsyning supply towards frem mod 2030 2030 9.11. Energy consumption for water production tatistics reenland as reared a olation rognosis wit associated data tat is sed to e production o drining water includes seeral actors. calclate te ftre average water consmtion e same olation rognosis is sed in te aw water is etracted rom seeral dierent sources, suc as laes and riers, wells or te sea. annal national lanning reorts roections ave een made for tree different scenarios for e etracted water is ten transported or treatment at a waterwors using dierent metods o siness develoment towards e scenarios are for an annal indstry growt of transport. In some areas, raw water is graitated ia water mains to te waterwors. In oter and areas, raw water is pumped directly to te waterwors or a designated raw water tan. In seeral areas, it is also necessary to protect water rom reezing in winter. o ensure tis, electrical e roections sow tat total water consmtion towards will increase sligtly is is antireeze cables are installed on te inside or outside o te water main. sown in figre

m3 HydropowerHydropower OtherOther towns towns e most costintensie and energydemanding metod or producing driningwater is reerse 4.500.0004,500,000 towns osmosis. In reerse osmosis, saltwater is pressed troug a ilter, tereby remoing salt and 4.000.0004,000,000 impurities. e metod is epensie and energyintensie because it requires large pumps tat can 3.500.0003,500,000 3.000.0003,000,000 supply ig pressure. oreoer, te seawater must be eated irst. e process o producing 2.500.0002,500,000 drining water using reerse osmosis wastes a lot o water compared wit te amount o water 2.000.0002,000,000 produced. eerse osmosis plants are typically used in illages located on islands wit limited raw 1.500.0001,500,000 water resources or were te reswater laes are located far away from a town’s or village’s 1.000.0001,000,000 waterwors. ey are also used as emergency installations. 500.000500,000 0 0 2014 2016 2018 2020 2022 2024 2026 2028 2030 FigurFigure 27 27 Fremskrivning Projections of af water vandforbrug consumption fordelt analysed på byer byog townsbygder, and 2014-2030 villages, 2014-2030 orce tatistics reenland

80 81

onsmtion of drining water is eected to stagnate for smaller towns and villages wereas it is increasing in larger towns 9.14. Business development and water supply sccessfl siness sector reires a good and reliale water sly system efore new sinesses are estalised or if eisting sinesses wis to eand teir rodction and terefore need more water and energy it mst e estalised weter sfficient caacity is availale t is very eensive to eand rodction to meet a secific need esecially in small commnities erefore a rincile as een introdced nder wic te arty wo wants a new rodction entity or wants to alter an eisting one is liale for covering te related costs s te costs related to eanding te caacity are transferred to te enterrise resonsile for te additional cost n a socioeconomic ersective tis means tat increasing rodction is costnetral for consmers even if te siness as to cease rodction efore te eanded installation as een aid off is otion to ass on costs to te arty resonsile for te etra costs is not always flly eloited

Increasing the capacity of a village’s waterworks not only has financial imlications it can also affect water ality en a waterconsming siness closes down its oerations or moves te reslting ecess caacity may lead to a sitation were te waterwors rodction no longer matces te arameters for wic it was originally dimensioned is may in trn mean tat wit regard to te new consmtion atterns te water sly installation cannot sly drining water of a ality tat meets te stattory ality reirements e relevant atorities te water sly tility and te siness mst coordinate teir activities to ensre tat te location of an indstrial facility secres te greatest socioeconomic gain for all arties

oday waterwors in villages are affected y te fact tat ntil now reinvestment in and eansion of waterwors ave een fragmented and rooted in te local commnity s a conseence te comonents sed in water treatment vary greatly it a view to standardising and modlising waterwors ftre investments will e ased on an overall assessment of were an investment will generate te greatest vale in relation to crrent and eected needs tandardisation and modlisation will ensre tat te same comonents can e sed in different locations tat stoc vale can e redced tat te need for training can e minimised tat oeration and maintenance are rotine tass etc

nvestments in waterwors in towns sold reflect te renovation needed and te eected olation growt so as to ensre caacity to meet crrent and ftre demand

aorto arsa isimit and llissat

82 In line with contine technological an igital evelopents within the water spply area this onsmtion of drining water is eected to stagnate for smaller towns and villages wereas it is will also e reflecte in new initiatives aie at optiising water ality an at recing increasing in larger towns investent an operating costs here are goo possiilities to rece the cost of water treatent within the net few years 9.14. Business development and water supply sccessfl siness sector reires a good and reliale water sly system efore new he increase focs on spplying rinking water that eets ality reireents is reflecte in sinesses are estalised or if eisting sinesses wis to eand teir rodction and terefore the ner of ays that local athorities have ha to instrct consers to oil water efore se need more water and energy it mst e estalised weter sfficient caacity is availale t is igre shows the ner of ays on which water ha to e oile for an for very eensive to eand rodction to meet a secific need esecially in small commnities kissiorfiit he figre shows that in coparison with the year efore the ner of ays on erefore a rincile as een introdced nder wic te arty wo wants a new rodction which water ha to e oile falls onth y onth inicating that the new investents entity or wants to alter an eisting one is liale for covering te related costs s te costs renovation an pgraing staff skills have ha an effect he ner of ays on which water has related to eanding te caacity are transferred to te enterrise resonsile for te additional to e oile is the ner of ays on which local athorities have instrcte the inhaitants of a cost n a socioeconomic ersective tis means tat increasing rodction is costnetral for town or village to oil water efore se consmers even if te siness as to cease rodction efore te eanded installation as

een aid off is otion to ass on costs to te arty resonsile for te etra costs is not always flly eloited Increasing the capacity of a village’s waterworks not only has financial imlications it can also affect water ality en a waterconsming siness closes down its oerations or moves te reslting ecess caacity may lead to a sitation were te waterwors rodction no longer matces te arameters for wic it was originally dimensioned is may in trn mean tat wit regard to te new consmtion atterns te water sly installation cannot sly drining water of a ality tat meets te stattory ality reirements e relevant atorities te water sly tility and te siness mst coordinate teir activities to ensre tat te location of an indstrial facility secres te greatest socioeconomic gain for all arties Jan.Jan. Feb.Feb. MarchMarch AprilApril MayMay JuneJune JulyJuly Aug.Aug. Sept.Sept.Oct. Oct.Nov. Nov.Dec. Dec. j

oday waterwors in villages are affected y te fact tat ntil now reinvestment in and FigureFigur 28 28 Antallet Number af of kogepåbudsdøgn days on which water has to be boiled eansion of waterwors ave een fragmented and rooted in te local commnity s a orceKilde: Nukissiorfiit kissiorfiit conseence te comonents sed in water treatment vary greatly it a view to standardising and modlising waterwors ftre investments will e ased on an overall assessment of were 9.15. DocumentedDokumenteret drinking drikkevandssikkerhed water safety an investment will generate te greatest vale in relation to crrent and eected needs o ensre focs on goo secrity of spply an high ality rinking water ocente rinking tandardisation and modlisation will ensre tat te same comonents can e sed in different water safety shol e ipleente at water spply locations is a control principle locations tat stoc vale can e redced tat te need for training can e minimised tat aie at re cing anor eliinating any risks that ay threaten etraction water treatent an oeration and maintenance are rotine tass etc istrition of rinking water isks can e ientifie y analysing the entire spply chain fro sorce to conser If the analysis ientifies any risks that ay affe ct water ality a control nvestments in waterwors in towns sold reflect te renovation needed and te eected point is estalishe for eaple a procere or an online reaing with a view to ensring that olation growt so as to ensre caacity to meet crrent and ftre demand water treatent reains within the scope of the optial operating profile his incles the esign an layot of ilings access rotes etc

is eing ipleente in kissiorfiit an is epecte to rn for a perio of three years aorto arsa isimit and llissat

82 83 9.16. Investments in water supply installations ver the past several years kissiorfiit has investe heavily in new proction installations an the istrition gri oreover technical iproveents have reglarly een ae to installations priarily to iprove water ality

he investents have een at town an village level see tale elow for the past five years

ince kissiorfiit has increase its investents in water spply installations in villages consieraly he increase investents have contrite to iproving the water spply installations an the rinking water ality in the villages he fall in the ner of ays on which water has to e oile is to a large etent e to these increase investents

Table 15. Investments in water supply analysed by towns and villages (Nukissiorfiit) owns illages otal

his tren will e contine in the ftre planning asis for reinvestent an new investents in for eaple water ains It is iportant to note here that a consierale part of the crrent ains an pipeline syste ae of cast iron will nee to e replace in the near ftre In aition new water ains nee to e estalishe to provie consers with connectivity to the fie water spply via a service pipeline his is reire action if lk water elivery is to e iscontine or rece significantly 9.17. Action plan for water quality and water treatment o increase oservance of the water protection ones in collaoration with other relevant athorities nicipalities an the reenlan elfovernent several initiatives will e lanche or eaple the ner of signs in areas srroning rinking water lakes will e increase an inforation capaigns aie at increasing awareness of where rinking water coes fro an ehavior within the water protection one will e prepare

ontine evelopent an epansion of the stanarisation an olarisation of waterworks in villages will ensre increase echangeaility etween ifferent facilities incling with regar to operation aintenance an training

84 9.16. Investments in water supply installations ive facilities ase on these principles will e installe in the villages in ver the past several years kissiorfiit has investe heavily in new proction installations an the istrition gri oreover technical iproveents have reglarly een ae to installations ocente rinking water safety will e ipleente in all larger towns y the en of priarily to iprove water ality an relevant staff will e traine an certifie to se this syste

9.18. Summary he investents have een at town an village level see tale elow for the past five years he water spply in towns an villages is graally eing iprove an ol an technically

otate facilities are eing replace In general the facilities in towns are of a very high stanar ince kissiorfiit has increase its investents in water spply installations in villages an have the capacity to eal with the local raw water resorces ater is istrite via consieraly he increase investents have contrite to iproving the water spply pressrise water pipelines an via lk water elivery via water trcks owever a sall ner installations an the rinking water ality in the villages he fall in the ner of ays on which of consers have to collect their rinking water fro a filling hose water has to e oile is to a large etent e to these increase investents

he water spply syste faces ore challenges in villages than in towns ecase there are Table 15. Investments in water supply analysed by towns and villages (Nukissiorfiit) virtally no pressrise water pipelines in these areas ater consption is relatively low owns ecase consers nee to collect their rinking water fro filling hoses illages otal In several areas the raw water resorces significantly ecee the aont of water conse in the inivial town or village s a conseence of this targete efforts have een initiate to his tren will e contine in the ftre planning asis for reinvestent an new investents in open p for coercial eploitation of this sitation y eporting ottle water or lk water for eaple water ains It is iportant to note here that a consierale part of the crrent stale an rost water spply is crcial with regar to the evelopent of a society not least ains an pipeline syste ae of cast iron will nee to e replace in the near ftre In seen in light of the crrent rapi evelopents within the siness area he greatest aition new water ains nee to e estalishe to provie consers with connectivity to the evelopents are proaly relate to the fishing instry owever it is iportant to ensre that fie water spply via a service pipeline his is reire action if lk water elivery is to e the water spply area contines to e evelope responsily an sstainaly his incles iscontine or rece significantly investing in new capacities – waterworks water ains an alityassrance systes

9.17. Action plan for water quality and water treatment tanarisation an olarisation efforts are iportant eleents with regar to recing o increase oservance of the water protection ones in collaoration with other relevant investent an proction costs for new facilities his will e taken into accont in connection athorities nicipalities an the reenlan elfovernent several initiatives will e with the ongoing evelopent of longter investent plans for oth reinvestent an lanche or eaple the ner of signs in areas srroning rinking water lakes will e investent in new facilities increase an inforation capaigns aie at increasing awareness of where rinking water coes fro an ehavior within the water protection one will e prepare rotection of water protection ones will e intensifie via oint efforts etween the relevant

athorities – kissiorfiit the nicipalities an the reenlan elfovernent ontine evelopent an epansion of the stanarisation an olarisation of waterworks in villages will ensre increase echangeaility etween ifferent facilities incling with regar to operation aintenance an training

84 85 10. Modernising the energy sector - electric cars liter / kWh 2.500.000 2.000.000

1.500.000 Table 16. Motor vehicles at the end of the year 2013-2016

1.000.000 500.000 Source: Annual statistics 2016 for Greenland’s Police 0 Qaqortoq Narsaq Nuuk Sisimiut Ilulissat Tasiilaq Figur 29 Forbrug af drivmidler til person- og varebiler i vandkraftbyer i 2016 Kilde: Grønlands Statistik

10.1. Local renewable energy to replace imported oil Naalakkersuisut fik i 2013 udarbejdet rapporten ”Elbiler som reelt alternativ i Nuuk”

“Use of environmentally friendly vehicles such as electric cars and hybrid cars is to be intensified by introducing more relaxed tax rates.” “For example, the use of electric cars and energyintensive euipment in the hydropoered tons should be promoted systematically. t should be easier for citiens and businesses to use such cars and euipment, and they should be encouraged to do so, for example, via an appropriate tax structure.”

86 10. Modernising the energy sector - electric cars ere is reat otential for reducin oil consution trou te introduction of electric cars As is seen in fiure 2 ener consution in te transort area is still alost eclusiel ased on etrol and diesel n 2016 electricit consution as onl reistered for electric cars and ans in uu and consution as er lo coared it etrol and diesel literlitres / kWh / kWh 2.500.000 litres / kWh 2,500,000 Petrol consumption Diesel consumption Petrol consumption Diesel consumption 2.000.000 [litre] [litre] 2,000,000

1.500.000 Table 16. Motor vehicles at the end of the year 2013-2016 1,500,000

1.000.000 1,000,000 500.000 Source: Annual statistics 2016 for Greenland’s Police 500,000 0 0 Qaqortoq Narsaq Nuuk Sisimiut Ilulissat Tasiilaq Qaqortoq Narsaq Nuuk Sisimiut Ilulissat Tasiilaq

Figur 29 Forbrug af drivmidler til person- og varebiler i vandkraftbyer i 2016 Kilde:Figure Grønlands 29 Consumption Statistik of fuels for cars and vans in hydropower towns in 2016 Source: Statistics Greenland e sinificant otential for usin reneale ener for assener transort in Greenland is in a reat art due to te fact tat te electricit sul in te drooer tons is riaril ased on reneale ener n an oter countries electricit is roduced ased on a iture of fossil fuels and reneale ener sources 10.1. Local renewable energy to replace imported oil Naalakkersuisut fik i 2013 udarbejdet rapporten ”Elbiler som reelt alternativ i Nuuk” n 201 aalaersuisut released a reort aout electric eicles as a real alternatie in uu lbiler som reelt alternativ i uu 2 in anis e reor t underlined tat electric eicles ae ood conditions in uu ic as a liited road infrastructure and electricit is roduced ased on hydropower. This also applies for Greenland’s other hydropower towns, and therefore electric eicles could also e a ood solution in tese tons n contrast usin electric eicles in tons it no drooer or oter fors of reneale ener sul ill not render te sae enefits ecause in tese tons oil is used to roduce electricit at dieselfuelled facilities

it reard to te drooer tons note tat usin drooer for transort uroses is onl adantaeous if it relaces oil f delierin electricit to electric cars leads to relacin drooered eatin it oilased eatin ten te ains it reard to ecoin indeendent of oil ill e liited n line it increasin drooer caacit and estalisin oter reneale ener sources tis issue ill raduall ecoe less ressin

“Use of environmentally friendly vehicles such as electric cars and hybrid cars is to be intensified by introducing more relaxed tax rates.” “For example, the use of electric cars and energyintensive euipment in the hydropoered tons 2 e reort is at liate Greenland: tt:cliatereenlandledia200 lilerso reelt alternati rldf should be promoted systematically. t should be easier for citiens and businesses to use such cars and euipment, and they should oeer it sould e noted tat in tons ere oilased oilers roide ood eloitation of eat it a still to soe etent be encouraged to do so, for example, via an appropriate tax structure.” e adantaeous to use electricit for cars instead of for collectie eatin

86 6 87 10.2. Easy to charge electric cars or the spread of electric cars to e sccessfl, it is essential that it is easy to chare these cars. The report on electric cars fro stated that the lac of charer infrastrctre constittes a sinificant arrier for electric cars in . Therefore aalaersuisut’s goal is that all residents in the hydropower towns hae access to electric car charers near their hoes. This eans that residents who want to acire an electric car will e ien access to a spply point, fro which they can estalish a charin station at their hoe also if they lie in plicly owned ltistorey hosin.

Need for private and public charging stations The lac of charin infrastrctre poses challenes for the any residents in ltistorey ildins who cannot siply install a hoechare nit.

This eans that priate charin stations st e installed at ltistorey ildins, and plic charin stations st e installed at central locations in towns. hereas a priate charin station can only e sed y the person who holds the riht of se, a plic charin station can e sed y eeryone ore or less in the sae way as yo can fill yor car with petrol at an nanned petrol station.

Pilot project in Nuuk n erary , aalaersist eained the possiilities for iproin the charin infrastrctre for electric cars in . ased on the resltin srey, in collaoration with the Greenland elfGoernent, in issiorfiit lanched a pilot proect that incldes estalishin charin stations at three ltistorey ildins and a raidchare station accessile to the plic in the town centre. The pilot proect will rn ntil the end of , at which tie it will e ealated.

The priately owned charin stations hae een installed at ltistorey ildins in the areas, ia, lora and Tapannit. total of electric car owners can sscrie to a priately owned charin station. The plic rapidchare station is so efficient that sers can chare their car while rocery shoppin or rnnin sall errands. ayent is ia creditpayent card, whereas payent for electricity fro priately owned charin stations is collected ia relar electricity ills.

Permanent scheme for car recharging infrastructure ased on the ealation of the pilot proect in , in it will decided whether to estalish a peranent schee for charin electric cars that will apply to all hydropower towns.

New buildings ready for electric cars n the ftre, all new ildins shold e desined to accoodate charin opportnities for electric cars. or all new ltistorey ildins, car recharin infrastrctre shold e resered

asse ltann , replan for opstilling af lademulighed til elbil i esisterende etagebyggeri i uu.

88 10.2. Easy to charge electric cars and reared in the er earl lanning stages his an e ensured inluding a reuireent or the spread of electric cars to e sccessfl, it is essential that it is easy to chare these cars. regarding this in the uilding regulations andor in uture uniial deeloent lans The report on electric cars fro stated that the lac of charer infrastrctre constittes a sinificant arrier for electric cars in . Therefore aalaersuisut’s goal is that all residents in 10.3. Driving an electric car should be financially advantageous the hydropower towns hae access to electric car charers near their hoes. This eans that inanial inenties an e used to enourage eole to hoose an eletri ar aalaersuisut residents who want to acire an electric car will e ien access to a spply point, fro which ants it to e heaer to drie an eletri ar than to drie a etrol or diesel ar they can estalish a charin station at their hoe also if they lie in plicly owned ltistorey hosin. Tax exemption for electric cars Need for private and public charging stations s stated in the oalition greeent 2018, “the use of environmentally friendly vehicles such The lac of charin infrastrctre poses challenes for the any residents in ltistorey as electric cars and hybrid cars is to be intensified by introducing more relaxed tax rates.” s a irst ildins who cannot siply install a hoechare nit. ste there ill e no iort ta or ar ta on eletri ars and hrid ars until anuar

This eans that priate charin stations st e installed at ltistorey ildins, and plic charin stations st e installed at central locations in towns. hereas a priate charin station can only e sed y the person who holds the riht of se, a plic charin station can e sed y eeryone ore or less in the sae way as yo can fill yor car with petrol at an nanned petrol station.

Pilot project in Nuuk n erary , aalaersist eained the possiilities for iproin the charin infrastrctre for electric cars in . ased on the resltin srey, in collaoration with the Greenland elfGoernent, in issiorfiit lanched a pilot proect that incldes estalishin charin stations at three ltistorey ildins and a raidchare station accessile to the plic in the town centre. The pilot proect will rn ntil the end of , at which tie it will e ealated.

The priately owned charin stations hae een installed at ltistorey ildins in the areas, ia, lora and Tapannit. total of electric car owners can sscrie to a priately owned charin station. The plic rapidchare station is so efficient that sers can chare their car while rocery shoppin or rnnin sall errands. ayent is ia creditpayent card, whereas payent for electricity fro priately owned charin stations is collected ia relar electricity ills.

Permanent scheme for car recharging infrastructure ased on the ealation of the pilot proect in , in it will decided whether to estalish a peranent schee for charin electric cars that will apply to all hydropower towns.

New buildings ready for electric cars n the ftre, all new ildins shold e desined to accoodate charin opportnities for electric cars. or all new ltistorey ildins, car recharin infrastrctre shold e resered

asse ltann , replan for opstilling af lademulighed til elbil i esisterende etagebyggeri i uu.

88 89 11. Modernising the energy supply - energy optimisation t t t. t , t . t t t , t t tt t tt t . tt t , t t t t, ttt , t t t, t t t t tt t. t t tt t tt t t t t tt t .

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tt t t t. . t t, t t tt t, t t , t t, t t t. t t t t t tt, t tt , t t t t t tt. 11.1. Energy optimisation in production and distribution t t t t tt tt t tt.

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90 8 11. Modernising the energy supply - energy optimisation t t t. t , t . t t t , t t tt t tt t . tt t , t t t t, ttt , t t t, t t t t tt t. t t tt t tt t t t t tt t . t t t t t, t t t t. tt t t t. . t t, t t tt t, – – t t , t t, t t t. t t t t t tt, t tt , t t t t t tt. 11.1. Energy optimisation in production and distribution t t t t tt tt t tt. , t tt , t tt tt t t . t t t t t t t t tt t tt t t , . t t t, , t, t t tt t t . t, t t t t t t t t t t t t t t . t, tt – t t – tt t t tt. t tt tt t t t t t t tt, t t t t t t t . t , t t, t t t t tt t t tt t 11.2. Savings for consumers t . t t t t. , t t t , tt t t tt t tt t t t.

90 8 91

may be to set up an “Energy Portal for Greenland” offering advice and guidance, for example,

92 11.3. Savings in the business sector e business sector as an obvious interest in elping to ensure tat Greenland becomes more “green” with regard to energy utilisation. The business sector may help reduce energy consumption by  ensuring tat goods sold to consumers comply it te best possible energy labels, so tat for example products it a long service life, suc as a freeer, ave loenergy labels,  replacing older types of ligting it E ligting,  implementing energy optimisation for production plants,  exploiting residual eat from production plants for internal eating, and, ere possible, as a contribution to te public district eating grid, and  increasing te use of sea ater for cleaning and cooling

rom a socioeconomic perspective, it is essential tat Greenland businesses it exports to oter countries, for example, businesses in te fising industry, are able to maret teir products as products based on reneable energy sources 11.4. Energy optimisation in the public sector Greenland elfGovernment and te municipalities must lead te ay en it comes to energy optimisation n tis ay, te public sector can contribute to promoting a maret for energy renovations s a first step, focus ill be on te great potential for optimisation and savings in te ligting area is includes street ligting ere old ligt bulbs it large energy consumption are still used in many places ver a number of years, uissiorfiit as been replacing old street ligting it loenergy E luminaires e number of old ligting luminaires still in use is approx ,, it a consumption of approx per luminaire e E luminaires consume approx y replacing all old ligting luminaires currently aiting to be replaced by E, an optimal energy saving of approx can be acieved is corresponds to approx on an annual basis urtermore, tere ill be a financial saving it regard to maintenance, as E ligting sources ave longer service lives tan traditional ligting sources uissiorfiit as so far installed around , E luminaires in Greenland may be to set up an “Energy Portal for Greenland” offering advice and guidance, for example, e investment in E ligting and te replacement by E luminaires are tus considered a sound socioeconomic initiative it a relatively sort paybac period investment vs savings in poer demand

92 93 t is important that any decision to reduce energy consumption in public buildings is leible so that energy renoations can be implemented in step with the ongoing renoation in general. This will ensure that proitability is as high as possible.

11.5. Action plan for energy optimisation uissioriit will continue optimising the eploitation o residual heat rom diesel generator plants. This includes wor to design a usiness ase or a possible pilot proect in a illage concerning supply o district heating or public buildings such as schools and serice houses. nergy sources other than diesel generator plants may orm part o the pilot proect e.g. photooltaics wind turbines and windmills. This wor will be commenced in the autumn o and will as ar as possible contribute to carrying out a pilot proect in .

The electricity supply grid will be analysed in detail with a iew to modelling possibilities or optimising the current state o the grid epansion redistribution o loads etc. This wor will be commenced in the autumn o .

The transer to uissioriit o heating centres boiler units and subunits should tae place as soon as possible and be based on a speciic assessment o the state o all eisting installations to be transerred rom one staeholder to another.

The public utilities should prepare consultancy materials including saings initiaties within energy as well as water. The materials should be technically wellounded and should describe the general initiaties as well as proide eamples o prices such as the price o replacing older pumps with a new type and the price o luminaires or indoor as well as outdoor use. imilarly adice should be gien on the possibilities to achiee saings on water. or eample a dripping tap or a leaing toilet may cost large sums o money.

ith regard to indiidual heat meters plans should be drawn up or the timings o socio economically releant replacements in public buildings and in miedownership buildings.

ith regard to indiidual water meters it should be ensured that the reuired installations are carried out in accordance with current legislation.

urthermore during the period initiaties will be launched to ensure that more consumers can be connected to a water main so that the eisting bul water deliery scheme can be reduced and in the long term discontinued.

94 t is important that any decision to reduce energy consumption in public buildings is leible so 12. Investment plan that energy renoations can be implemented in step with the ongoing renoation in general. This will ensure that proitability is as high as possible. 12.1. Fixed asset investments uissioriit owns ied assets at a alue o appro. . billion and is thus a considerable and important business in reenland. epreciation o ied assets will be based on ied rates 11.5. Action plan for energy optimisation nderground pipelines will be depreciated oer years machinery or electricity production in uissioriit will continue optimising the eploitation o residual heat rom diesel generator plants. illages will be depreciated oer years and water production plants will be depreciated oer This includes wor to design a usiness ase or a possible pilot proect in a illage concerning years. The goal o uissioriit is a reinestment leel o at least million. The reinestment supply o district heating or public buildings such as schools and serice houses. nergy sources does not include new and larger installations or which separate loans hae been allocated on the other than diesel generator plants may orm part o the pilot proect e.g. photooltaics wind inance and ppropriation ct e.g. hydropower proects nor does it include installations turbines and windmills. This wor will be commenced in the autumn o and will as ar as transerred rom other staeholders such as boiler units and heating centres. The planning basis possible contribute to carrying out a pilot proect in . or thus includes an actiity leel o around million broen down by renewals o plants replacements and site deelopment proects. The inancing o inestments by uissioriit The electricity supply grid will be analysed in detail with a iew to modelling possibilities or is based partly on own unds and partly on loans rom the reenland eloernment. To this optimising the current state o the grid epansion redistribution o loads etc. This wor will be should be added costs o the epansion o orlortorsua. commenced in the autumn o . 12.2. Loan requirements The transer to uissioriit o heating centres boiler units and subunits should tae place as soon uissioriit’s loan requirement has been estimated on the basis of a construction season allowing as possible and be based on a speciic assessment o the state o all eisting installations to be or outdoor actiities in the period running rom ay up to and including ctober. This period transerred rom one staeholder to another. aries rom north to south and rom east to west. The shortest season is in aanaa and ttoortoormiit with a construction season running rom ulyugust to eptember. The public utilities should prepare consultancy materials including saings initiaties within energy as well as water. The materials should be technically wellounded and should describe the uissioriits loan reuirement is reported as part o the annual negotiations on the inance and general initiaties as well as proide eamples o prices such as the price o replacing older ppropriation ct. This also includes proposals or loan reuirements or the subseuent budget pumps with a new type and the price o luminaires or indoor as well as outdoor use. imilarly years. The current loan reuirement is estimated at million per year. This does not include adice should be gien on the possibilities to achiee saings on water. or eample a dripping tap maor ied asset inestments or eample in new renewable energy sources such as hydropower or a leaing toilet may cost large sums o money. plants and new transmission lines. or does it include costs related to natural disasters costs associated with transer o new installations etc. ith regard to indiidual heat meters plans should be drawn up or the timings o socio economically releant replacements in public buildings and in miedownership buildings. The loan reuirement has been determined so that reinestments can be made in new installations and distribution networs based on agerelated operational technical and inancial ith regard to indiidual water meters it should be ensured that the reuired installations are considerations o serice lie. carried out in accordance with current legislation. 12.3. Interest and repayment of existing loans

uissioriit has taen out longterm debt at an interest rate o which means that an annual urthermore during the period initiaties will be launched to ensure that more consumers can be interest amount o appro. million is paid to the reenland Treasury. n addition to this connected to a water main so that the eisting bul water deliery scheme can be reduced and in actual repayment amounts to appro. million. s o the interest rate has been the long term discontinued. reduced to or new loans.

The term or loans taen out rom will be years at a nominal interest rate o per year. oans taen out beore hae been consolidated into one loan. ue to the uniorm price reorm total repayment will be reduced by million per year and the repayment proile or 94 95 loans taen out before will similarl be etended o comensate for the etended reament rofile a declining interest rate will be set for loans taen out before he interest rate will be set so that it balances the effect on interest aments of an etended reament rofile and the effect on interest aments of a lower interest rate

he interest rate for loans taen out before was originall set at a nominal interest rate of er ear n the consolidated loan from before the interest rate will be graduall reduced b ercentage oints annuall until the annual nominal interest rate amounts to er ear after which it will be maintained at this leel

Planning basis for 2018 and onwards (reinvestments) nestments b uissiorfiit are based on an ongoing assessment of the condition of the eisting installations n this contet secific roect charters will be reared for indiidual initiaties including a realistic assessment of the need to balance the construction roects between indiidual towns and settlements and across the entire uissiorfiit area of resonsibilit he lanning basis also ensures that as far as ossible there will be contracts for local contractors in Nukissiorfiit’s entire area of responsibility. This will ensure partly that local contractors can bid for contracts in their local communit and artl that uissiorfiit has greater certaint of receiing bids for contracts tendered he leel of actiit in reenland in recent ears has shown that not all lanned roects hae been realisable because there were no bids or the bids were too high

he most imortant future tass and the tass associated with the largest financial burden are currentl those related to necessar relacements of water mains and district heating ies n seeral laces these water mains and district heating ies are old and hae man leas their internal coatings gie the water a brown colour the are often too small in terms of caacit etc ith regard to the water mains sstem the lan is that this will be eanded so that more customers can be connected to ressuried water thus significantl imroing their eerience of water sul ith regard to the district heating grid this will be otimised etended and connected to district heating networs from waste incineration lants for eamle in order to otimise the use of heat generated as residual heat from diesel generator lants and waste incineration and to increase the number of customers that can relace their oilfired installations with district heating

he high actiit leel in the fishing industr in recent ears is also reflected in the lanning basis for the ears to come en though uissiorfiit generall refers to the rincile where the art resonsible for the etra costs as when new fish factories are established there is ongoing relacement and otimisation of water sul his includes all subunits from the raw water resources until the water is sulied to the customer n the water area the most significant deeloment and thus the greatest inestment need is in the iso a area and in the north of reenland

96 loans taen out before will similarl be etended o comensate for the etended reament rofile a declining interest rate will be set for loans taen out before he n addition to iproeents of the water supply increasin the electricity supply capacity is also interest rate will be set so that it balances the effect on interest aments of an etended often needed. This need is accoodated by enhancin the capacity of the installations replaced. reament rofile and the effect on interest aments of a lower interest rate uture site deelopent proects for an iportant part of plannin for the coin years as he interest rate for loans taen out before was originall set at a nominal interest rate of there is onoin coordination with releant unicipalities. The leel of inestent is likely to er ear n the consolidated loan from before the interest rate will be graduall reduced b increase considerably in response to future plans to etend the two airports in lulissat and Nuuk ercentage oints annuall until the annual nominal interest rate amounts to er ear and establish an airport in aorto. n addition deelopents plans will be prepared for after which it will be maintained at this leel indiidual unicipalities see the releant unicipal deelopent plans.

Planning basis for 2018 and onwards (reinvestments) n the future standardisation and odularisation of installations will ake up an essential basis nestments b uissiorfiit are based on an ongoing assessment of the condition of the eisting for reducin the price per inested unit while at the sae tie optiisin daytoday operations installations n this contet secific roect charters will be reared for indiidual initiaties and aintenance. n addition to this in the future eployees will be reuired to participate in including a realistic assessment of the need to balance the construction roects between specific education and trainin actiities before the installations are transferred to the operatin indiidual towns and settlements and across the entire uissiorfiit area of resonsibilit he phase. urtherore there will be a reuireent for eistin installations that are bein replaced lanning basis also ensures that as far as ossible there will be contracts for local contractors in to be reoed in an enironentally acceptable anner. Nukissiorfiit’s entire area of responsibility. This will ensure partly that local contractors can bid for contracts in their local communit and artl that uissiorfiit has greater certaint of receiing n addition to reinestent proects proect charters will be prepared for renewable enery bids for contracts tendered he leel of actiit in reenland in recent ears has shown that not sources such as wind turbines and there ay be a followup on the onoin aliku pilot proect all lanned roects hae been realisable because there were no bids or the bids were too high hybrid plant. iilarly photooltaics and other enery sources will be ealuated as possible ways of increasin the percentae of enery produced fro renewable enery sources. he most imortant future tass and the tass associated with the largest financial burden are 12.4. Investments in new hydropower plants currentl those related to necessar relacements of water mains and district heating ies n The oalition reeent lists seeral hydropower potentials that should be launched aniitso seeral laces these water mains and district heating ies are old and hae man leas their aaiut asiaatasiiannuit and Nanortalik. urtherore epansions of the hydropower internal coatings gie the water a brown colour the are often too small in terms of caacit etc potentials for aortoNarsa orlortorsua Tasiila and in the loner ter Nuuk will be ith regard to the water mains sstem the lan is that this will be eanded so that more planned for the coin years. customers can be connected to ressuried water thus significantl imroing their eerience of water sul ith regard to the district heating grid this will be otimised etended and Depending on sales, Nukissiorfiit’s share of renewable energy amounts to approx. 70%. Total connected to district heating networs from waste incineration lants for eamle in order to enery produced fro renewable enery reains at a relatiely stable leel of h per year. otimise the use of heat generated as residual heat from diesel generator lants and waste The reainin appro. h enery is produced fro oil howeer this percentae ay incineration and to increase the number of customers that can relace their oilfired installations fluctuate dependin on sales particularly in the heatin area. t has been assessed that the current with district heating hydropower capacity enables an increase in sales for heatin by appro. h per year if

appro. illion is inested in district heatin and interruptible electric heatin. n this he high actiit leel in the fishing industr in recent ears is also reflected in the lanning basis connection, Nukissiorfiit’s earnings will be increased, which provides scope for inestents in for the ears to come en though uissiorfiit generall refers to the rincile where the art other proects or alternatiely reductions in consuer prices of serices proided by Nukissiorfiit resonsible for the etra costs as when new fish factories are established there is ongoing hiher repayents on lonter loans etc. relacement and otimisation of water sul his includes all subunits from the raw water resources until the water is sulied to the customer n the water area the most significant The possible new hydropower plants in asiaatasiiannuit aniitso aaiut and Nanortalik deeloment and thus the greatest inestment need is in the iso a area and in the north of are assessed to ointly be able to increase renewable enery production for Nukissiorfiit by appro. reenland hyear. The total price of these installations is estiated at around billion. ppro. 96 97 0 per cent of the energy will be produced for the electricity market, and 0 per cent will be produced for the heating market. Total annual production of energy by Nukissiorfiit including expansion of the heating grids would then increase to approx. 7 hyear, of which 00 hyear would be produced from renewable energy and 7 hyear would still be based on oil. The share of renewable energy could thus be increased to approx. 7%.

xpansions in orlortorsua and Tasiila new turbine and larger catchment area would contribute another 7 hyear, which will almost exclusively go towards increasing heat production. n total, the price for both expansions will amount to approx. D 0 million. The expansions will ointly increase the share of green energy by approx. %.

The expansions of renewable energy sources should thus be assessed and followed closely with regard to external impacts, including any business potentials. 12.5. Expected and future action areas ork is currently ongoing in several areas to achieve economies of scale by ensuring that the public supply system, and the responsibility for the services provided via this system, are placed under one authority. or example, this applies to the expected decision to transfer boiler units and heating centres from housing companies to Nukissiorfiit. The same applies to the increase in the number of flats with separate individual meters for own consumption. ith regard to ittarfearfiit, it is also expected that boiler units and heating centres will be transferred to Nukissiorfiit during the upcoming planning horion. inally, it should be considered whether present activities related to energy production and distribution from the waste incineration plants should be transferred to Nukissiorfiit. n this connection, it is important to determine the reuired and most reasonable number of waste incineration plants from a socioeconomic perspective.

n important precondition for achieving economies of scale and getting the most value from investments in new installations is to make an initial assessment of the efficiency of existing installations, including the distribution grids. nvestment in new installations to achieve efficiency improvements will not pay off if the new, optimised installations are connected to old installations and inefficient distribution grids with poor control, regulation and monitoring facilities. 12.6. New action areas roactive and innovative developments of new energy initiatives, such as the hybrid proect in galiku or the geothermal plant at the Nukissiorfiit head office, are seen as important first steps towards using new energy sources in reenland. t is essential that this development be followed continuously, but it is also important that new technologies be tested in reenland, although without installing prototype plants.

n this connection, several possibilities could potentially be relevant in the near future. xperience from other comparable areas in rctic regions has shown that both photovoltaics on a large scale

98 7 0 per cent of the energy will be produced for the electricity market, and 0 per cent will be and wind turbines on a smaller scale may be relevant for use in reenland. Nukissiorfiit is produced for the heating market. Total annual production of energy by Nukissiorfiit including therefore to continue work on these initiatives with a view to completing proect charters during expansion of the heating grids would then increase to approx. 7 hyear, of which 00 the upcoming planning period. owever, it is essential that a solid data basis be established before hyear would be produced from renewable energy and 7 hyear would still be based on outlining proects for new capacities, e.g. wind data, hours of sun, etc. n addition to this, the use oil. The share of renewable energy could thus be increased to approx. 7%. of storage units, new enginesgenerator types, etc. will be analysed and included in the proect charters whenever this makes sense. xpansions in orlortorsua and Tasiila new turbine and larger catchment area would contribute another 7 hyear, which will almost exclusively go towards increasing heat n the near future, geothermal plants andor heat pumps will also be addressed with regard to production. n total, the price for both expansions will amount to approx. D 0 million. The performing tests at localities other than Nuuk. expansions will ointly increase the share of green energy by approx. %. 12.7. Summary

The planning basis for the coming years shows that continuous development of existing plants is The expansions of renewable energy sources should thus be assessed and followed closely with reuired, particularly with regard to existing supply systems for water and district heating. This will regard to external impacts, including any business potentials. tie up a considerable amount of Nukissiorfiit’s planned budget for investments. The water supply 12.5. Expected and future action areas area will face special challenges with regard to new installations to support the fishing industry, ork is currently ongoing in several areas to achieve economies of scale by ensuring that the even if reference is made to the principle where the party responsible for the extra costs pays. The public supply system, and the responsibility for the services provided via this system, are placed most significant challenge appears to be related to the availability of raw water resources. under one authority. or example, this applies to the expected decision to transfer boiler units and heating centres from housing companies to Nukissiorfiit. The same applies to the increase in the Transfer of new plants and tasks to Nukissiorfiit is seen as relevant from a socioeconomic number of flats with separate individual meters for own consumption. ith regard to perspective, because economies of scale can be achieved by gathering all supply activities under ittarfearfiit, it is also expected that boiler units and heating centres will be transferred to one authority. owever, this is not possible without inecting financial resources. therwise, the Nukissiorfiit during the upcoming planning horion. inally, it should be considered whether price of the new tasks will have to be added to the current tariffs for electricity, water and heating. present activities related to energy production and distribution from the waste incineration plants should be transferred to Nukissiorfiit. n this connection, it is important to determine the reuired ith the right investment, expansion of existing hydropower plants and establishment of new and most reasonable number of waste incineration plants from a socioeconomic perspective. hydropower plants as well as outlining proects for new renewable energy sources can enable Nukissiorfiit to achieve a very high renewables share in supply by 00. n important precondition for achieving economies of scale and getting the most value from investments in new installations is to make an initial assessment of the efficiency of existing installations, including the distribution grids. nvestment in new installations to achieve efficiency improvements will not pay off if the new, optimised installations are connected to old installations and inefficient distribution grids with poor control, regulation and monitoring facilities. 12.6. New action areas roactive and innovative developments of new energy initiatives, such as the hybrid proect in galiku or the geothermal plant at the Nukissiorfiit head office, are seen as important first steps towards using new energy sources in reenland. t is essential that this development be followed continuously, but it is also important that new technologies be tested in reenland, although without installing prototype plants.

n this connection, several possibilities could potentially be relevant in the near future. xperience from other comparable areas in rctic regions has shown that both photovoltaics on a large scale

98 7 99 100 100 101

Photo: © Tikki Geisler Annexes Annex 1. Basis for calculation of projected electricity and heating consumption The proection of energy consumption is an epression of how consumption is epected to develop in an “allelsebeingequal” scenario. In other words, the projection shows the expected development without taking account of the conseuences of investments in new installations. Thus the analysis provides a basis for assessing the etent to which new initiatives are needed in the energy sector.

opulation development and energy consumption The proection of energy consumption for electricity and heating is based on the population forecast from tatistics reenland. alculations of energy consumption are based on knowledge about the average consumption per inhabitant in towns and villages and on epectations for the sie of the population and its distribution across the country. This is supplemented by epectations for consumption by business and industry with proections based on different growth rates.

nergy consumption for transport including fishing vessels air transport sea transport and road transport, is not included in the analyses. Similarly, Mittarfeqarfiit’s supply to angerlussua Narsarsua as well as ulusuk and aarsut airports is not included.

usiness development nergy consumption by business and industry is assumed to increase in line with an epected economic growth rate in society. Three scenarios for growth in the business sector and for increased energy consumption have been used a growth rate following the population development a growth rate of and a growth rate of .

eneable energy n the proection production of renewable energy is calculated as the production of hydropower and waste heat relative to Nukissiorfiit’s total energy production. Hydropower plants are expected to have the same capacity as they have today. n the proection production of hydropower is epected to increase steadily up to within the frameworks of the current hydropower plant capacities. ploitation of the plants is thus epected to improve taking into account however that individual plants cannot supply more than their current maimum supply. The amount of available waste heat is epected to increase slightly.

Impact on operating costs, capital costs and lending ,,

102

Annexes ANNEX 2. Alternative pricing models his annex presents the key figures for models to . Annex 1. Basis for calculation of projected electricity and heating consumption Model 2 The proection of energy consumption is an epression of how consumption is epected to develop in an “allelsebeingequal” scenario. In other words, the projection shows the expected lectricity . . . development without taking account of the conseuences of investments in new installations. ater . . Thus the analysis provides a basis for assessing the etent to which new initiatives are needed in Industry tariff Minimum of . of the local of the local unit cost the energy sector. unit cost

opulation development and energy consumption The proection of energy consumption for electricity and heating is based on the population Net result Million forecast from tatistics reenland. alculations of energy consumption are based on knowledge reenland Selfovernment, incl. . Mittarfeqarfiit about the average consumption per inhabitant in towns and villages and on epectations for the Municipalities . sie of the population and its distribution across the country. This is supplemented by epectations rivate consumers . for consumption by business and industry with proections based on different growth rates. usinesses . ishing industry . nergy consumption for transport including fishing vessels air transport sea transport and road otal savings . transport, is not included in the analyses. Similarly, Mittarfeqarfiit’s supply to angerlussua Narsarsua as well as ulusuk and aarsut airports is not included. usiness development ownvillage amily amily amily amily nergy consumption by business and industry is assumed to increase in line with an epected asiilaq , , economic growth rate in society. Three scenarios for growth in the business sector and for ullorsuaq , , increased energy consumption have been used a growth rate following the population aqortoq , , development a growth rate of and a growth rate of . Ilulissat , , Nuuk , eneable energy Sisimiut

n the proection production of renewable energy is calculated as the production of hydropower and waste heat relative to Nukissiorfiit’s total energy production. Hydropower plants are expected to have the same capacity as they have today. n the proection production of hydropower is epected to increase steadily up to within the frameworks of the current hydropower plant .. Nukissiorfiit, reduced capital loans ,, capacities. ploitation of the plants is thus epected to improve taking into account however Nukissiorfiit, reduced interest .. ,, that individual plants cannot supply more than their current maimum supply. The amount of payment available waste heat is epected to increase slightly. Savings for reenland Selfovernment and the municipalities as well as pulic ,, institutions and Selfovernmentowned usinesses orporation tax enefit ,, .. Nukissiorfiit ,,

Impact on operating costs, capital costs and lending ,,

102 103

Model 3 lectricity .. .. ater . . Industry tariff Minimum of . of the local Minimum of . of the local unit unit cost cost

Net result Million reenland Selfovernment, incl. . Mittarfeqarfiit Municipalities . rivate consumers . usinesses . ishing industry . otal savings .

ownvillage amily amily amily amily asiilaq , , ullorsuaq , , aqortoq , , Ilulissat , , Nuuk Sisimiut

.. Nukissiorfiit, reduced capital loans ,, Nukissiorfiit, reduced interest ,, .. payment Savings for reenland Selfovernment and the municipalities as well as pulic ,, institutions and Selfovernmentowned usinesses orporation tax ,, enefit .. Nukissiorfiit ,,

Impact on operating costs, capital costs and lending ,, Impact on operating costs, capital costs and lending ,,

104

Model 3 Model 4 lectricity .. .. lectricity .. .. ater . . ater . . Industry tariff Minimum of . of the local Minimum of . of the local unit Industry tariff Minimum of . of the local unit of the local unit cost unit cost cost cost

Net result Million Net result Million reenland Selfovernment, incl. reenland Selfovernment, incl. . . Mittarfeqarfiit Mittarfeqarfiit Municipalities . Municipalities . rivate consumers . rivate consumers . usinesses . usinesses . ishing industry . ishing industry . otal savings . otal savings .

ownvillage amily amily amily amily ownvillage amily amily amily amily asiilaq , , asiilaq , , ullorsuaq , , ullorsuaq , , aqortoq , , aqortoq , , Ilulissat , , Ilulissat , , Nuuk Nuuk Sisimiut Sisimiut

.. Nukissiorfiit, reduced capital loans ,, .. Nukissiorfiit, reduced capital loans ,, Nukissiorfiit, reduced interest ,, .. payment Nukissiorfiit, reduced interest .. payment ,, Savings for reenland Selfovernment and the municipalities as well as pulic Savings for reenland Selfovernment ,, and the municipalities as well as pulic institutions and Selfovernmentowned ,, usinesses institutions and Selfovernmentowned usinesses orporation tax ,, enefit orporation tax enefit ,, .. Nukissiorfiit ,,

.. Nukissiorfiit

Impact on operating costs, capital costs and lending ,, 104 105

Model 5 lectricity .. . ater . . Industry tariff Minimum of . of the local Minimum of . of the local unit cost unit cost

Net result Million reenland Selfovernment, incl. . Mittarfeqarfiit Municipalities . rivate consumers . usinesses . ishing industry . otal savings .

ownvillage amily amily amily amily asiilaq , , ullorsuaq , , aqortoq , , Ilulissat , , Nuuk Sisimiut

.. Nukissiorfiit, reduced capital loans ,,

.. Nukissiorfiit, reduced interest payment ,,

Savings for reenland Selfovernment and the municipalities as well as pulic institutions and Selfovernmentowned ,, usinesses orporation tax enefit ,, .. Nukissiorfiit ,,

Impact on operating costs, capital costs and lending ,, Impact on operating costs, capital costs and lending ,,

106

Model 5 Model 6 lectricity .. . ater . . lectricity .. . Industry tariff Minimum of . of the local Minimum of . of the local ater . . unit cost unit cost Industry tariff Minimum of . of the local of the local unit cost unit cost Net result Million reenland Selfovernment, incl. . Net result Million Mittarfeqarfiit reenland Selfovernment incl. . Municipalities . Mittarfeqarfiit rivate consumers . Municipalities . usinesses . rivate consumers . ishing industry . usinesses . otal savings . ishing industry . otal savings . ownvillage amily amily amily amily asiilaq , , ownvillage amily amily amily amily ullorsuaq , , asiilaq , , aqortoq , , ullorsuaq , , Ilulissat , , aqortoq , , Nuuk Ilulissat , , Sisimiut Nuuk Sisimiut .. Nukissiorfiit, reduced capital loans ,, .. Nukissiorfiit, reduced construction loan ,, .. Nukissiorfiit, reduced interest payment ,, Nukissiorfiit, reduced interest ,, .. payment Savings for reenland Selfovernment Savings for reenland Selfovernment and the municipalities as well as pulic and the municipalities as well as pulic ,, institutions and Selfovernmentowned ,, institutions and Selfovernmentowned usinesses usinesses

orporation tax enefit ,, orporation tax enefit ,, .. Nukissiorfiit ,, .. Nukissiorfiit Impact on operating costs, capital costs and lending ,,

106 107

Model 7 lectricity .. . ater . . Industry tariff Minimum of . of the local . of the local unit cost unit cost

Net result Million reenland Selfovernment, incl. . Mittarfeqarfiit Municipalities . rivate consumers . usinesses . ishing industry . otal savings .

ownvillage amily amily amily amily asiilaq , , , , aqortoq , Ilulissat Nuuk , , Sisimiut , ,

.. Nukissiorfiit, reduced construction loan .. Nukissiorfiit, reduced interest payment Savings for reenland Selfovernment and the municipalities as well as pulic ,, institutions and Selfovernmentowned usinesses

orporation tax enefit ,,

.. Nukissiorfiit

Impact on operating costs, capital costs and lending ,, Impact on operating costs, capital costs and lending ,,

108

Model 8 lectricity .. . ater . . Industry tariff Minimum of . of the local of the local unit cost unit cost

Net result Million reenland Selfovernment, incl. . Mittarfeqarfiit Municipalities . rivate consumers . usinesses ishing industry . otal savings .

ownvillage amily amily amily amily asiilaq , , Napasoq , , aqortoq , , Ilulissat Nuuk , Sisimiut , ,

.. Nukissiorfiit, reduced capital loans Nukissiorfiit, reduced interest .. payment Savings for reenland Selfovernment and the municipalities as well as pulic ,, institutions and Selfovernmentowned usinesses orporation tax enefit ,, .. Nukissiorfiit

Impact on operating costs, capital costs and lending ,,

108 109

Photo: © Mads Pihl – VisitGreenland