Norway’s Climate Investment Fund to invest in renewables in India

NEW DELHI: Norwegian Climate Investment Fund, run by Norfund and KLP, is set to invest in a 420 MW solar power plant in Rajasthan being built by the Italian Enel Green Power.  KLP is Norway’s largest pension company and Norfund is a development and finance institution.

A deal has been reached for the Norwegian Climate Investment Fund to acquire a 49% share in a 420 MW solar power plant in Rajasthan being built by the Italian Enel Green Power. For almost Rs 2.8 billion, Norway’s largest pension company will purchase a 49% stake in the Thar Surya 1 solar energy project. After the project is finished, it will produce more than 750 GWh annually. According to a statement from the Norwegian embassy, this will prevent more than 615,000 tonnes of CO₂ emissions annually given India’s current energy mix.

Over the next five years, the climate investment fund will allocate 10 billion NOK (about 1 billion USD), with India as a priority market. In order to achieve its goals for the growth of wind and solar energy by 2030, India has to invest 233 billion USD, according to a report by BloombergNEF (BNEF).

At COP26, Espen Barth Eide, Norwegian Climate and Environment Minister had met Bhupender Yadav, India’s Minister of Environment, Forest and Climate Change, and resolved to strengthen bilateral relations. This is when Norway agreed to double India’s climate finance to NOK 14 billion by 2026. Moreover, eight MoUs have also been signed between the two countries which focus on renewable energy, green hydrogen, green ammonia, etc.