SECTOR PLAN FOR ENERGY 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 ELECTRICITY AND WATER PRICES 1617 4. Prices of electricity, water and heat ...... 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 Naalakkersuisut'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 RENEWABLE ENERGY AND MODERNISATION OF THE ENERGY AND THE WATER SECTORS ...... 3839 5. Modernisation of the energy sector ...... 3940 5.1. Energy consumption 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 energy supply 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 power ...... 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. Solar energy...... 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 - Hydropower ...... 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. Wind power 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
4 5
6 PART I:
OVERALL STRATEGY OBJECTIVES
6 7 1. Foreword Public energy and water supplies are a fundamental part of Greenland'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 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 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 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, 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, geothermal energy, 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 Igaliku. 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. fuel-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 solar power, 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 Aasiaat and Qasigiannguit.
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 Maniitsoq, Nanortalik and water in the individual town or village with the following modification: Paamiut 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 Tasiilaq 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 Qorlortorsuaq 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 Nuuk 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) light 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 Sermersooq is the only municipality in which the average personal income is above the national average. Qeqqata Kommunia lies slightly below the national average, whereas the average income in Kommune Kujalleq and Qaasuitsup 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 Sisimiut 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 Narsaq Ilulissat Tasiilaq Aasiaat
Sisimiut Paamiut Qaanaaq Qaqortoq Maniitsoq 10.00 Red: Minimum tariff for water Nanortalik Upernavik Kangaatsiaq All of Uummannaq Nuuk Qeqertarsuaq Qasigiannguit Narsaq Ittoqqortoormiit 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 Kangerlussuaq. The income level in Narsarsuaq 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 Kullorsuaq 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 Denmark. 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
DKK DKK øre/kWh øre/kWh 2007 2007 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
The e e proposed oresl ede oresl ede new e e minimummi im ms ris mi im ms ris price or orof electricity is ei d strie is ei d strie at DKK 0.66el el per r r kWh r r for the fishing il il s ledes s ledes industry or edre or edre will e oresl ede e mi im ms ris or is ei d strie el r r il s ledes or edre therefore e e e llerede llerede oresl ede improve g s e g s e e an o rre ed gtig o rre ed gtigmi im ms ris already very competitive or is ei d strie or old or old situation d d g r g r withel el rise el rise regard r to r the price il of s ledes electricity. or edre e llerede g s e o rre ed gtig or old d g r el rise e llerede g s e o rre ed gtig or old d g r el rise
See e e ogs ogs also eltable el 6 below ede or ede or on existing or or dede re de re deGreenland gr l ds epricesgr l ds e for the riser riserfishing tiltil industry is ei d strie is ei d strie in selected i i d lgte d lgte towns, er er and e ogs el ede or or de re de gr l ds e riser til is ei d strie i d lgte er table eogog elogs el 7 on el what or or d d the ede or riser eprices riser e will or il il debe re re re delike med undermed rismodel rismodel pricing gr l ds e model 1. riser til is ei d strie i d lgte er og el or d riser e il re med rismodel og el or d riser e 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) Nuuk Nuværende priserQaqortoq orto orto til fiskeindustrien Tasiilaq siil siil i udvalgte byer ort li Nanortalik ort li (2017 priser) Qaanaaq U er i UpernavikU er i orto siil ort li U er i DKK 0.68/kWh r r DKK orto 0.97/kWh r r DKK siil 1.42/kWh r r ort li DKK 1.99/kWh r r DKK 2.44/kWh r r U er i DKK 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 orto orto siil siil ort li ort li U er i U er i orto siil ort li U er i DKK 0.66/kWh r r DKK orto 0.91/kWh r r DKK siil 1.02/kWh r r ort li DKK 1.60/kWh r r DKK 1.60/kWh r r U er i DKK r1.60/kWh r r r r r r r r r r r r r
500.00 EU-28 EU EU EU-28 450.00 EU EU elgie EU Belgium elgie 400.00 elgie Belgium elgie elgie Denmark 350.00 m r elgie m r m r m r Denmark m r 300.00 m r Germany s l d m r s l d s l d s l dGermany 250.00 s l dGreenland maximum r l d s l d r l d m sim l ris m sim l ris r l dpriceGreenland businesses m sim l ris maximum and r l d m sim l ris er er r l dfishinger er price industrybusinesses og ogm sim l ris is ei d stri is ei d stri and 200.00 r l der er og m sim l ris is ei d stri r l der er Greenland r l dfishing og industrym sim l rismi im l ris minimum is ei d strimi im l ris price er er r l d og mi im l ris is ei d stri r l der er businesses og mi im l ris is ei d stri 150.00 er er r l der er Greenland og mi im l ris is ei d stri minimum r l der er mi im l ris r l der er Greenlandprice businesses mi im l ris minimum price er er r l d r l d mi im l ris mi im l ris 100.00 r l der er fishing industry mi im l ris is ei d stri r l der er is ei d stri mi im l ris r l d is ei d striGreenland mi im l ris minimum is ei d stri erige r l d erige mi im l ris 50.00 is ei d stri erigeSwedenprice fishing industry is ei d stri erige erige erigeSweden 0.00 Source: Eurostat ilde ilde E rost t E rost t ilde E rost t DKK ilde DKK øre/kWh øre/kWh E rost t 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015 20162016 DKK ilde øre/kWh E rost t 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EUEU DKKEU -28 øre/kWh 122.19 2007 127.61 2008 135.54 2009 139.40 2010 142.28 2011 144.56 2012 151.07 2013 150.44 2014 146.71 2015 138.45 2016 EU DKK øre/kWh 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Belgium elgie EU elgie 120.68 139.97 125.49 129.83 140.96 137.94 134.23 135.46 134.13 145.60 elgie EU Denmark m r elgie EU m r 155.56 162.94 156.03 150.81 165.95 163.48 138.65 140.52 135.14 136.29 m r elgie Germany s l d m r elgie s l d 150.08 153.68 156.02 162.04 172.44 176.11 190.02 177.30 166.92 164.07 s l d m r Greenland r l d s l d m r r l d m sim l rismaximum m sim l ris price er er er er businesses og og is ei d stri is ei d stri and fishing r l d s l d m sim l ris er er og is ei d stri 396.51 442.83 330.09 334.75 359.71 372.01 338.05 347.07 321.28 324.00 industry r l d s l d r l d mi im l rism sim l ris mi im l ris er er er er og is ei d stri r l d mi im l rism sim l ris er er er er og is ei d stri Greenland r l d r l d mi im l rism sim l risminimum mi im l ris price is ei d strier er is ei d strier er businesses og is ei d stri 172.45 182.05 173.24 178.61 190.92 184.01 166.94 170.97 158.11 161.00 r l d mi im l ris is ei d strier er Greenland erige r l d erige mi im l risminimum price is ei d strier er fishing industry 56.91 60.08 71.89 74.12 79.23 76.36 69.28 70.95 65.61 66.82 erige r l d mi im l ris is ei d stri Sweden erige r l d mi im l ris is ei d stri 80.23 96.98 104.81 113.97 116.99 124.82 105.32 100.94 100.59 93.02 erige Figur erigeFigur 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 Priserne ilde ilde E rost t E rost t er vist iE ergist relse E ergist relse DKK øre / kWh iog ogfaste ege ege priser til ir i g til ir i g med basisår 2016 Source: ilde E rost t Eurostat, E ergist relse the Danish Energy og ege Agency til ir i g and own adjustments ilde E rost t E ergist relse og ege til ir i g
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