India: Norway announces 49% stake in Italian-made solar plant in Rajasthan

On Monday, in a move to bolster participation against climate change, Norway announced a large solar power investment in India, with an agreement to take a 49 per cent stake in a 420MW solar power plant in Rajasthan, developed by Italian Enel.

The new Norwegian Climate Investment Fund, managed by Norfund, and KLP (Norway's largest pension company), have entered into an agreement to take a 49 per cent stake in a 420 MW solar power plant in Rajasthan developed by Italian Enel,

According to a press release from the Norwegian Embassy in India, the Norwegian Climate Investment Fund (managed by Norfund) and KLP, will collaborate together in the solar energy project — titled — Thar Surya 1 — for approximately Rs2.8 billion. The 420 MWDC (300 MWAC) new solar power plant is being built in Rajasthan by Italian Enel Green Power.

"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," said the Norwegian Ambassador, Hans Jacob Frydenlund.

When the project is up and running, it 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 release added.

The climate investment fund will allocate 10 billion Norwegian Krone (NOK; approx. 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," explained Minister of International Development Anne Beathe Tvinnereim.

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

IEA's 'India Energy Outlook 2021' shows that India will have the greatest need in the world for growth, in the energy sector.

"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," said Sverre Thornes, CEO at KLP.

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