Norway’s sovereign wealth fund to invest $1 billion in renewable energy projects

Norway’s sovereign wealth fund said Monday it will commit 900 million euros, or about $1.01 billion, to investment firm Copenhagen Infrastructure Partners’ (CIP) latest renewable energy fund.

Norway’s Bank of Norway Investment Management (NBIM) committed the money to CIP’s CI Fund V, which invests in offshore and onshore wind, solar farms, grids and distribution, as well as storage, according to CNBC.

Norway’s sovereign wealth fund, which has $1.7 trillion in assets, invests the proceeds of Norway’s oil and gas industry in global equities, fixed assets, real estate and renewable energy assets.

“This transaction will provide further investment opportunities and exposure to other parts of the value chain, as well as the opportunity to continue building knowledge and expertise with new markets and technologies,” the fund said.

CIP expects to complete the fundraising for CI Fund V, exceeding the fund’s target size of 12 billion euros, or about $13.4 billion. The first close was worth 5.6 billion euros, about $6.26 billion, of capital commitments in June last year, according to its website.

“The commitment confirms that our ability to deliver attractive risk-adjusted returns, while delivering clean, affordable energy and creating local growth and jobs, is attractive to the world’s largest and most ambitious investors,” CIP said in an emailed statement.

The investments will be split equally between the three regions of North America, Western Europe and developed Asia-Pacific, according to Norges Bank Investment Management.