Norwegian Minister of Foreign Affairs Anniken Huitfeldt at a solar power plant in New Delhi, which also has investment by NORFUND.

Norway’s Climate Investment Fund announces large solar power investment in India

The new Norwegian Climate Investment Fund, managed by Norfund, and KLP, Norway’s largest pension company, have entered into an agreement to take a 49% stake in a 420 MW solar power plant in Rajasthan developed by Italian Enel.

Norfund and KLP together will take a 49% stake in the solar energy project Thar Surya 1 for approximately 2.8 billion INR. The 420 MWDC  (300 MWAC) new solar power plant is being built in Rajasthan by Italian Enel Green Power.

“Norway and India are partners in the global energy transition. Through the Climate Investment Fund, managed by Norfund, Norway is delivering on its climate finance commitments while contributing to India’s energy security and clean power supply,” said the Norwegian Ambassador, Hans Jacob Frydenlund.

When the project is up and running it will deliver more than 750 GWh per year. Given India’s current energy mix, the project will avoid more than 615,000 tonnes of Co2 emissions per year*.

Ambitious plans for investing in India

The climate investment fund will allocate 10 billion NOK (approx. 1 billion USD) over the next five years, with India being a priority market.

“This summer with extreme heat and drought in many parts of the world has shown us, more clearly than ever, that there is no time to waste in the fight against climate change. That is why it is such good news that in record time the Climate Investment Fund’s money is already working for these crucial investments in renewable energy,” says Minister of International Development Anne Beathe Tvinnereim.

Norfund, the Norwegian Government’s development finance institution, has entered a strategic investment partnership with Italian Enel Green Power in India.

“This is the first investment we are making with Enel, and together we have great ambitions to contribute with similar investments in India in the years to come,” says Norfund CEO Tellef Thorleifsson.

According to a report from BloombergNEF (BNEF), India needs 233 billion USD in investment to meet its goals for development of wind and solar energy by 2030. IEA’s “'India Energy Outlook 2021'” shows India will have the greatest need in the world for growth in the energy sector.

“KLP and Norfund have been investing in developing countries together for a decade, and we are very excited to enter a market like India where there is such a great need for renewable energy,” says Sverre Thornes, CEO at KLP.


*Avoided emissions have been calculated with help from “IFI Default grid factors 2021 v3.2”: https://unfccc.int/sites/default/files/resource/Harmonized_IFI_Default_Grid_Factors_2021_v3.2_0.xlsx