Norway to invest $1.14bn in clean energy

The Norwegian government will invest USD $1.14 bn (NOK 10 billion) over five years to a new fund that will invest in renewable energy in developing countries to help reduce global gas emissions.

“The growth in energy demand in developing countries is enormous. We have experience from the most relevant markets and a network of partners, and we are confident that we can put the capital to work effectively and in line with host country energy plans,” said Tellef Thorleifsson, CEO of Norfund.

Thorleifsson said that the fund will prioritize investments in India, Vietnam, Indonesia and other countries in South and Southeast Asia, where there is intensive use of coal-fired power. 

“We expect to invest mainly in solar and wind energy, but also anticipate storage solutions to enable a stable power supply,” he added.

Norfund said they contribute less than 35 percent of the equity requirements of an energy project, in which such projects often finance 70-80 percent of costs with debt. “This means that every dollar Norfund invests can trigger ten dollars of capital in a project,” the explained in the statement.