KLP and Norfund to collaborate on Indian solar investment
The Norwegian government and the country’s largest pension provider are set to invest 2.8 billion INR as the drive to support the reduction of carbon emissions in India continues.
Norway’s largest pension provider and the Norwegian government’s development finance institute have entered into a partnership to fund a major solar power plant project in India.
KLP, which manages the pensions of public sector workers in Norway, and state-owned Norfund, which invests in developing countries, are taking a 49% stake in the plant. They are making a joint investment of 2.8bn INR (£2.2bn) in the new 420MW solar power plant.
The plant, located in Rajasthan, is being developed by Italian energy company Enel Green Power.
Norfund’s investment will be made through the Norwegian Climate Investment Fund, which is set to invest a total of 10bn NOK (£868m) over the next five years to support a range of emerging projects involving renewable energy and the reduction of carbon emissions in developing countries.
Discussing how the new project is set to address the targets laid out in the Paris Agreement, KLP CEO, Sverre Thomas, said: “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.”
“Cutting emissions to meet the Paris Agreement will require phasing out coal. KLP has a goal to increase climate-friendly investments by at least six billion NOK (£518m) every year. The effect on the environment is positive and provides returns to our owners.”
The world must triple investments in renewable energy until 2030 so that the energy market can meet the needs in a way that is compatible with the ambitions of the Paris Agreement.
The net-zero impact for India
The project is set to provide India with an annual energy output in excess of 750GWh.
This could allow India to replace many coal-based energy outputs and an annual reduction of carbon dioxide emissions of 615,000 tonnes.
KLP’s director of corporate responsibility, Heidi Finskas, commented: “If we are to achieve the targets in the Paris Agreement, we need more renewable energy – and especially in developing countries where coal is often the alternative.
“The world must triple investments in renewable energy until 2030 so that the energy market can meet the needs in a way that is compatible with the ambitions of the Paris Agreement.”
According to a recent BloombergNEF report, to meet its 2030 wind and solar energy goals, India needs to receive $233bn worth of investments.
