Norway’s Climate Investment Fund, managed by Norfund, and KLP, the largest pension company in Norway, through their joint venture KNI India, have invested approximately NOK 317 million (~$30 million) in equity capital and up to NOK 530 million (~$50 million) in loan guarantees for a 168 MW wind power project developed by Enel Green Power in Gujarat.

The wind project, which is already operational, is expected to generate approximately 700 GWh of clean energy per year and mitigate around 573,000 tons of CO2 emissions annually.

The wind project represents the third collaboration between the Climate Investment Fund and KLP, further solidifying their partnership. The Climate Investment Fund owns 51% and KLP 49% of the joint investment partnership – KNI India.

Norfund and Enel Green Power established a joint investment agreement for renewable energy projects in India in July 2020.

Following their collaboration on the 420 MW Thar solar project announced in August 2022, Gujarat state’s 168 MW wind project marks their second venture together. The wind project has secured a 25-year power purchase agreement through a government auction, ensuring a stable revenue stream.

The investment in India aligns with the country’s urgent need to expand its energy sector, with plans to add a power system comparable to the current production capacity of the European Union over the next two decades.

Tellef Thorleifsson, CEO of Norfund, emphasizes the importance of mobilizing capital for renewable investments in India to support its sustainable growth trajectory.

In its inaugural year, the Climate Investment Fund has committed a total of NOK 2.14 billion (~$200 million), enabling projects to avoid an estimated 6.2 million tons of CO2 emissions annually, equivalent to 13% of Norway’s total emissions. With the Norway government planning to allocate NOK 10 billion (~$940 million) to the fund over the next five years, this initiative is crucial in financing sustainable projects and reducing greenhouse gas emissions.

Recently, Norfund said it would invest about NOK600 million (~$60.5 million) in the Indian solar and agricultural waste-to-energy company SAEL. The investment will help SAEL support its target of growing its renewables portfolio to 3 GW by 2028 by adding 100 MW of new biomass and 400 MW of new solar capacity annually to its existing portfolio of 600 MW.

Earlier, Norfund and the country’s largest pension fund KLP had announced an investment of NOK109 million (~$10.85 million) for a 49% ownership stake in ReNew Power’s transmission project in the Koppal district of Karnataka.