Norwegian fund commits equity, guarantees for Enel Green Power’s wind plant

New Delhi: The Norwegian Climate Investment fund, managed by Norfund, and KLP, Norway’s largest pension company, have together committed equity investment and guarantees for a 168 MW wind power plant developed by Enel Green Power in India.

A statement from the Royal Norwegian Embassy in New Delhi and Consulate General in Mumbai said that the announcement comes as the first annual report of Norfund’s new climate mandate shows commitments to projects with total estimated avoided emissions of 6.2 million tonnes CO2e per year - equivalent to 13% of Norway’s annual emissions.

“Via the investment partnership KNI India, Norfund brings along KLP, Norway’s biggest pension company, with joint commitments of ca NOK 317 million ( ₹2,4 billion) in equity capital and loan guarantees up to NOK 530 million ( ₹4 billion) towards the construction of the project,” the statement said.

The climate investment fund owns 51% of KNI India, while KLP holds 49% stake.

Taking to Twitter, Hans Jacob Frydenlund, the Norwegian Ambassador to India and Bhutan said: “The Norwegian Climate Investment Fund @norfund is increasing its investment by INR 2.4 billion in equity & giving INR 4 billion in loan guarantees to @enelgreenpower 168 MW #WindPower plant in #Gujarat together with Norwegian pension company #ClimateFinance @mnreindia.”

“The investment is the 4th in #India by the new Norwegian Climate Investment Fund. The Fund has already invested in #SolarPower in #Rajasthan, #Transmission in #Karnataka and #BiomassEnergy in North India, making #Norway a significant green investor in #India. @PMOIndia @MEAIndia,“ said another tweet.

The investment is the fourth made under the Climate Mandate in India.

Enel Green Power, founded in 2008 within the Enel Group to develop and manage renewable power projects globally, operates over 59 GW of installed renewable capacity in Europe, Asia, Africa and the Americas. In July 2020 Norfund and Enel Green Power entered into a joint investment agreement for renewable energy projects in India. The first project together, the 420 MW Thar solar plant, was announced in August 2022.

This second project is a 168 MW wind project in Gujarat.