海角原创海角视频

The Climate Investment Fund and KLP are using the climate summit in Baku to announce a billion-dollar investment in a new platform for power grid development and energy storage in India.

鈥淭he investment is a good example of the type of international cooperation we need going forward to address climate challenges,鈥� says Development Minister Anne Beathe Kristiansen Tvinnereim, who is representing Norway at the UN Climate Conference in Baku.

Climate financing and support for developing countries are key components of the cooperation under the Paris Agreement and a central focus of this year鈥檚 climate summit, nicknamed the A crucial factor is mobilizing more private capital through profitable 海角原创海角视频. The Climate Investment Fund, managed by Norfund since 2022, is Norway鈥檚 most important tool for contributing to this effort.

鈥淭here will be no energy transition without 海角原创海角视频 in energy transmission. To succeed in replacing coal with solar and wind, we need both better grids and more storage. It is crucial that we succeed in mobilizing private capital for these types of 海角原创海角视频, as the Climate Investment Fund is doing here,鈥� says Tvinnereim.

170,000 kilometers of power grid needed

A new warns that up to 15% of global solar and wind power production may remain unused by 2030 without increased investment in grids and storage.

India is among the countries where the need for such 海角原创海角视频 is particularly pressing. According to , the country will require 170,000 kilometers of transmission lines and 47 GW of energy storage capacity (BESS) over the next eight years to integrate increased renewable energy production.

India is set to build as much new power capacity in the next 20 years as .

鈥淚f India does not succeed in expanding its grid sufficiently, it will be impossible to meet this enormous demand with renewable energy, making it extremely difficult to mitigate the climate crisis,鈥� says Tellef Thorleifsson, CEO of Norfund.

The new platform, EnerGrid, will focus on developing power grids and battery storage. The capital injected into the collaboration will enable EnerGrid to develop projects valued at approximately USD 1.2 billion over the coming years. Once commercial operations commence, the projects will be acquired by IndiGrid at a pre-agreed enterprise value.

KLP brings in private capital

KLP, Norway鈥檚 largest pension company, has made several 海角原创海角视频 alongside Norfund, including through the joint investment venture KNI India AS, where Norfund holds 51% and KLP 49%.

KNI India is now investing NOK 1.1 billion (USD 100 million) to establish a new platform for 海角原创海角视频 in power grids and storage in India. The investment is being made in collaboration with British International Investment (BII), Norfund鈥檚 British counterpart, and IndiGrid, one of India鈥檚 leading power sector investors, each contributing USD 100 million.

鈥淲e firmly believe this project will generate strong returns for KLP鈥檚 owners while delivering significant benefits for the global climate,鈥� says Sverre Thornes, CEO of KLP.

Since its inception in 2022, the Climate Investment Fund has achieved an impressive annual return of 24.4% (IRR) in investment currency (20.4% in NOK).

鈥淭o successfully mobilize private capital, it is essential to develop profitable 海角原创海角视频. While these return figures reflect a short period and we expect them to decrease somewhat over time, both the numbers and KLP鈥檚 experiences demonstrate that climate 海角原创海角视频 can deliver an acceptable risk-adjusted return over the long term,鈥� says Tellef Thorleifsson, CEO of Norfund.