Norwegian Climate Investment Fund to invest in Indian wind power plant – EQ Mag
The largest pension company in Norway, KLP, and the Norwegian Climate Investment fund, run by Norfund, have pledged ownership and guarantees for a 168 MW wind farm being built by Enel Green Power in India. Over 59 GW of installed renewable capacity are operated by Enel Green Power, a subsidiary of the Enel Group created in 2008 to develop and manage renewable power projects globally. This capacity is located in Europe, Asia, Africa, and the Americas.
A joint investment agreement for renewable energy projects in India was signed by Norfund and Enel Green Power in July 2020. The 420 MW Thar solar facility was announced as the group’s first project in August 2022. Gujarat’s second project is a 168 MW wind farm. Similar to Thar, Enel Green Power has a 25-year power purchase agreement and was granted the ability to sell electricity through a government auction.
With combined commitments of about NOK 317 million (INR 2,4 billion) in equity capital and loan guarantees up to NOK 530 million (INR 4 billion) for the project’s construction, Norfund collaborates with KLP, Norway’s largest pension company, through the investment partnership KNI India. The facility, which is already in operation, is anticipated to produce around 700 GWh annually. Given India’s present energy mix, which includes a sizable amount of coal, the project will prevent about 573,000 tonnes of CO2 annually.
In India, the nation with the highest demand worldwide for energy sector expansion, the investment is the fourth made under the Climate Mandate. According to the IEA, India will need to install a power infrastructure the size of the existing EU production to handle the increase in electricity demand over the next 20 years. India’s power output increased in 2022 at its quickest rate in 33 years, with coal-fired power generation increasing by an astounding 12.4%. This also meant that emissions from the production of electricity increased by almost a sixth, to 1.15 billion tonnes.
In a world where investors appear to be pulling money away from emerging economies like India, it is imperative that we be able to mobilise additional funds towards these initiatives, according to Tellef Thorleifsson, CEO of Norfund. The most recent investment is a part of the NOK 2.14 billion in promises made in the new Climate Investment Fund’s first year, which the government has stated will receive NOK 10 billion over the following five years.
The fund, which started operating last year, will already support projects with avoided emissions that are expected to total 6.2 million tonnes CO2e per year*. 13% of Norway’s yearly emissions are represented by that. The initiative that was revealed on Monday is the third investment made by the Climate Investment Fund with KLP as a co-investor. “KLP wants to boost investments that benefit the environment by at least six billion NOK annually. Sverre Thornes, CEO of KLP, expressed satisfaction that the company’s efforts to increase renewable energy production are also giving our owners a profit.
Source: PTI
