Climate Investment Fund Makes First Exit with Indian Power Line Project
Deal News | Jun 10, 2025 | Norfund
In its first significant divestment since being founded in 2022, the Climate Investment Fund (CIF), managed by Norfund, has announced the sale of its stake in an Indian power line project. The investment was initially made in partnership with ReNew Power and KLP, with the project connecting 2.5 GW of wind power to the Indian national grid. The exit aligns with CIF's strategy of repurposing capital to maximize climate impact, selling the project to Indigrid to continue investment activities in renewable energy. This move marks a critical milestone in CIF's mandate to support the reduction of greenhouse gas emissions through strategic, impactful financial engagements in renewable projects within high-emission developing countries.
Sectors
- Renewable Energy
- Private Equity
- Infrastructure
Geography
- India – The power line project described in the article was completed in India.
- Norway – Norfund, the manager of the Climate Investment Fund, is based in Norway.
Industry
- Renewable Energy – The article discusses investments in wind power projects, which are a part of the renewable energy sector.
- Private Equity – Norfund and its Climate Investment Fund function as a private equity entity managing investments in infrastructure projects.
- Infrastructure – The article focuses on power line projects, which are essential infrastructure for energy distribution.
Financials
- 900 million rupees (109 million NOK) – Initial investment amount made by Norfund, ReNew Power, and KLP in the power line project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Climate Investment Fund | Selling Company | Company | A fund managed by Norfund, focused on investing in renewable energy projects to avoid greenhouse gas emissions. |
| Norfund | Manager | Company | Norwegian Investment Fund for Developing Countries that manages the Climate Investment Fund. |
| ReNew Power | Partner Company | Company | Indian company involved in the development of the power line project in partnership with Norfund. |
| KLP | Investment Partner | Company | Norway's largest pension company, which partnered in the investment. |
| Indigrid | Bidding Company | Company | Indian company acquiring the investment stake from the Climate Investment Fund. |
| Bjrnar Baugerud | Head of the Climate Investment Fund | Person | Provides strategic direction and oversight for the fund. |