Norfund and KLP together will take a 49% stake in the solar energy project Thar Surya 1 for approximately 2.8bn INR. The 420 MWDC (300 MWAC) new solar power plant is being built in Rajasthan in India by Italian Enel Green Power.
“This summer with extreme heat and drought in many parts of the world has shown us, more clearly than ever, 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 in developing countries” said Minister of International Development ，Anne Beathe Tvinnereim.
The climate investment fund will allocate 10 billion NOK over the next five years, with 1 billion coming from Norfund’s capital and 1 billion from the state budget each year. Since Norfund can advance parts of the fund that originate from Norfund’s own capital, the total amount in the fund could already reach 2.8 billion NOK by the end of 2022.
When the project is up and running it will deliver more than 750 GWh per year. Given India’s current energy sources, with a considerable proportion coming from coal, the project will avoid more than 615,000 tonnes of Co2 emissions per year* – equivalent to the yearly emissions from 316,000 petrol cars in Norway.
“We are extremely glad to have this large-scale investment in place. If India is to base its energy needs on renewables there is an enormous need for capital, which we are contributing to in part with the new climate investment fund,” says Tellef Thorleifsson, CEO of Norfund.
According to a new 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.