Firstpost | Norway’s Climate Investment Fund enters agreement to take 49% stake in 420 MW solar power plant in Rajasthan

Aug 22,2022

The Norwegian Climate Investment Fund, managed by Norfund and KLP, has entered into an agreement to take a 49 per cent stake in a 420 MW solar power plant in Rajasthan developed by Italian Enel Green Power.

Norwegian Embassy in New Delhi on Monday said that Norfund and KLP, Norway’s largest pension company, will take a 49 per cent stake in the solar energy project Thar Surya 1 for approximately Rs 2.8 billion.

"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," Norwegian Ambassador, Hans Jacob Frydenlund said.

Once operational, the project 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, the Norwegian embassy said in a statement.

The climate investment fund will allocate 10 billion NOK (approximately 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," Norway Minister of International Development Anne Beathe Tvinnereim said.

According to a report by BloombergNEF (BNEF), India needs 233 billion USD in investment to meet its goals for development of wind and solar energy by 2030.

Norway and India at COP26

At COP26, Norwegian Climate and Environment Minister, Espen Barth Eide, met India's Environment, Forest and Climate Change Bhupender Yadav. During the meeting, the ministers spoke about how both nations have increasingly tapped bilateral economic and technical complementarities, and looked forward to strengthening the cooperation.

Norway also promised to double the climate finance to NOK 14 billion by 2026 at the latest.

Norway-India sign MoUs with focus on green hydrogen, green ammonia, renewable energy

During her India visit, Norwegian Foreign Minister, Anniken Huitfeldt met with Minister for Petroleum and Natural Gas, Hardeep Singh Puri and both the leaders discussed about hydrogen, renewables, low carbon solutions and energy storage.

During the meetings eight MoUs were inked, proving how the Norway-India energy cooperation is further strengthening based on mutually beneficial partnerships.

Agreements with focus on green hydrogen, green ammonia, renewable energy, fuel cells and CCS that were signed, will take the Norway-India clean energy cooperation to the next level.

Norwegian Minister also announced membership of the International Solar Alliance.