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    Home AMERICAS Greenland

    Hydropower expansion in trouble: Tender cancelled

    The Analyst by The Analyst
    May 2, 2026
    in Greenland
    Hydropower expansion in trouble: Tender cancelled


    NunaGreen states that the company has decided to cancel the ongoing tender regarding the expansion of the hydroelectric plant in Utoqqarmiut Kangerluarsunnguat (Buksefjorden).

    Buksefjord Vandkraftværk supplies Nuuk with electricity, but there is a need to expand capacity.
    Archive photo: Leiff Josefsen

    The big one construction project with the expansion of the hydroelectric plant in Utoqqarmiut Kangerluarsunnguat – Buksefjorden has run into problems.

    The self-government-owned company NunaGreen, which will carry out the project, states on Tuesday that only a single offer has been received in connection with a turnkey tender.

    There were otherwise three potential bidders after a pre-qualification, but the two have therefore dropped out.

    After negotiations, NunaGreen has assessed that the offer level reflected a lack of competition in the tender process, and that the risk burden on NunaGreen as a developer was unattractive, the company says.

    The expansion has previously been estimated to cost around three billion kroner, and it will therefore be one of the largest construction projects in Greenland ever.

    The focus is on limiting delay

    According to NunaGreen, preparatory work continues with the establishment of an access road, and the focus is now on limiting the overall delay of the project as much as possible.

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    Director Aviaaja Karlshøj Knudsen states that NunaGreen has worked purposefully so that the tender could lead to the conclusion of a contract and the start of the project:

    – When this has not been successful, it is important for us to organize the further process in a way that supports competition to a greater extent and a more robust implementation of the project, says Aviaaja Karlshøj Knudsen and continues:

    – At the same time, we have a strong focus on uncovering and managing risks in a construction project of this size, so that it can be realized on a solid basis and for the benefit of society.

    NunaGreen expects to be able to announce more details about the further process for the implementation of the project before the summer.





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