Norfund: Commits to NOK 1.1 Billion Power Grid Investment in India
Deal News | Dec 09, 2024 | Norfund
Norfund and KLP have announced a considerable investment of NOK 1.1 billion into a new platform named 'EnerGrid' for power grid development and energy storage in India. This investment is part of a broader effort to mobilize private capital to address climate change by enhancing energy transmission infrastructure essential for transitioning from coal to renewable sources like solar and wind. The initiative leverages the Climate Investment Fund managed by Norfund and is revealed during the UN Climate Conference in Baku. With the support of British International Investment and IndiGrid, the venture aims to build critical infrastructure necessary to support India's ambitious renewable energy goals, including adding 500 gigawatts of clean energy capacity by 2030. The investment also highlights the importance of international cooperation and private sector involvement in climate finance.
Sectors
- Energy
- Finance
Geography
- India – The primary focus of the investment is on India's energy infrastructure development to support renewable energy integration.
- Norway – Norfund and KLP, based in Norway, are key investors contributing to this project.
- Azerbaijan – The investment announcement was made during the UN Climate Conference held in Baku, Azerbaijan.
Industry
- Energy – The article is centered around investments in energy infrastructure, specifically power grids and energy storage, critical for supporting renewable energy deployment in India.
- Finance – Norfund and KLP's investment represents an instance of climate finance, crucial for mobilizing capital in developing countries to tackle climate change.
Financials
- NOK 1.1 billion – Investment by Norfund and KLP in the EnerGrid platform for developing power grids and energy storage in India.
- USD 1.2 billion – Value of projects EnerGrid aims to develop over the coming years.
- 24.4% (IRR) – Annual return achieved by the Climate Investment Fund since its inception in investment currency.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norfund | Investor | Company | Norfund is Norway's development finance institution, managing the Climate Investment Fund to facilitate sustainable investments. |
| KLP | Investor | Company | Norway's largest pension company partnering with Norfund for investments in India's energy sector. |
| Climate Investment Fund | Funding Source | Company | Managed by Norfund, it is a key tool for climate financing under Norway's strategy. |
| IndiGrid | Project Acquisition | Company | One of India's leading power sector investors involved in acquiring projects developed under the EnerGrid platform. |
| British International Investment (BII) | Investor | Company | Norfund's British counterpart contributing to the investment in India's energy sector. |
| Anne Beathe Kristiansen Tvinnereim | Government Representative | Person | Norway's Development Minister, advocating for international cooperation in climate finance. |
| Tellef Thorleifsson | CEO | Person | CEO of Norfund, leading the organization’s efforts in climate-related investments. |
| Sverre Thornes | CEO | Person | CEO of KLP, overseeing the company’s investments in renewable energy projects as part of their climate strategy. |