Norfund and KLP, through their joint venture KNI India, have made an investment of $80 million in Enel Green Power’s wind project in Gujarat. The project, which has already commenced operations, is expected to generate approximately 700 GWh of clean energy each year and reduce CO2 emissions by about 573,000 tons annually.
This collaboration between Norfund’s Climate Investment Fund and KLP marks their third joint venture, reinforcing their partnership. The Climate Investment Fund holds a 51 per cent stake, while KLP owns 49 per cent in the investment partnership called KNI India.
Norfund and Enel Green Power established their joint investment agreement for renewable energy projects in India in July 2020. The wind project in Gujarat follows their previous collaboration on the Thar solar project, a 420 MW initiative announced in August 2022. The wind project has secured a 25-year power purchase agreement through a government auction, ensuring a steady revenue stream.
This investment aligns with India’s urgent need to expand its energy sector, with plans to match the current production capacity of the European Union over the next two decades. Tellef Thorleifsson, CEO of Norfund, emphasizes the importance of mobilizing capital for renewable investments in India to support its sustainable growth trajectory.
In its first year, the Climate Investment Fund has committed a total of $200 million, enabling projects to avoid an estimated 6.2 million tons of CO2 emissions annually, equivalent to 13 per cent of Norway’s total emissions. With the Norwegian government planning to allocate $940 million to the fund over the next five years, this initiative plays a crucial role in financing sustainable projects and reducing greenhouse gas emissions.
In addition to the wind project, Norfund has recently announced a $60.5 million investment in SAEL, an Indian company specializing in solar and agricultural waste-to-energy. This investment will help SAEL reach its goal of expanding its renewables portfolio to 3 GW by 2028, with plans to add 100 MW of new biomass and 400 MW of new solar capacity annually.
Earlier, Norfund and KLP had also invested $10.85 million for a 49 per cent ownership stake in ReNew Power’s transmission project in the Koppal district of Karnataka, further demonstrating their commitment to supporting sustainable initiatives in India.
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