KLP and Norway's Climate Investment Fund invest in transmission

10 Jan 2023 CW Team

According to Norwegian Ambassador Hans Jacob Frydenlund, “India's green transition must be successful for the world to succeed in battling global warming. I'm happy Norway can assist to enabling the spread of renewables in India by investing in transmission lines."

Sumant Sinha, Chairman and CEO of ReNew Power said, "Investing in the transmission sector shows our achievement in capital recycling and creates synergies with our main RE business. As a leader in India's energy transformation, we are thrilled to join with Norfund and KLP to help India's green energy transition and look forward to strengthening this cooperation in the future."

“Through this investment we are contributing to the connection of 2.5 GW of planned renewable power in the south being connected to the national grid. We are pleased to make Norfund’s and the Climate Investment Fund’s first investment in the sector, and we look forward to strengthening our partnership with Renew,” said Bjørnar Baugerud, Vice President, Clean Energy in Norfund.

Since May, Norfund has been managing Norway's new Climate Investment Fund, which will invest in renewable energy in developing nations with high emissions from coal power and other fossil fuels in order to cut and avoid emissions. The fund has already invested in Fourth Partner Energy, India's top developer of distributed solar energy solutions, and a large-scale solar park alongside Enel.

The Norwegian Parliament has now approved an additional 1 billion NOK for the new Norwegian Climate Investment Fund, which was already given 1 billion NOK in the state budget for 2022 and matched with an equal amount from Norfund's capital. Within five years, the fund is expected to reach 10 billion NOK. "Over 8 billion NOK in possible investments have been identified by Norfund. Our contributions are modest compared to the overall demands, but there are enormous opportunities for expansion,” said Baugerud.

The newly established Norwegian Climate Investment Fund, run by Norfund and KLP, the country's largest pension fund, will make its initial investment of INR 900 million in a transmission project being built by ReNew Power in India. Norfund and KLP will invest for a 49% ownership stake in ReNew's transmission project in the Koppal district of Karnataka, in partnership with ReNew Power, one of the largest renewable energy independent power producers (IPPs) in India and globally, with plans for additional joint investments. According to Norwegian Ambassador Hans Jacob Frydenlund, “India's green transition must be successful for the world to succeed in battling global warming. I'm happy Norway can assist to enabling the spread of renewables in India by investing in transmission lines. Sumant Sinha, Chairman and CEO of ReNew Power said, Investing in the transmission sector shows our achievement in capital recycling and creates synergies with our main RE business. As a leader in India's energy transformation, we are thrilled to join with Norfund and KLP to help India's green energy transition and look forward to strengthening this cooperation in the future. “Through this investment we are contributing to the connection of 2.5 GW of planned renewable power in the south being connected to the national grid. We are pleased to make Norfund’s and the Climate Investment Fund’s first investment in the sector, and we look forward to strengthening our partnership with Renew,” said Bjørnar Baugerud, Vice President, Clean Energy in Norfund. Since May, Norfund has been managing Norway's new Climate Investment Fund, which will invest in renewable energy in developing nations with high emissions from coal power and other fossil fuels in order to cut and avoid emissions. The fund has already invested in Fourth Partner Energy, India's top developer of distributed solar energy solutions, and a large-scale solar park alongside Enel. The Norwegian Parliament has now approved an additional 1 billion NOK for the new Norwegian Climate Investment Fund, which was already given 1 billion NOK in the state budget for 2022 and matched with an equal amount from Norfund's capital. Within five years, the fund is expected to reach 10 billion NOK. Over 8 billion NOK in possible investments have been identified by Norfund. Our contributions are modest compared to the overall demands, but there are enormous opportunities for expansion,” said Baugerud.