Access to energy is a fundamental requirement for economic growth, job opportunities, and enhanced living standards in developing countries. Transitioning to a renewable energy system is essential for combating the climate crisis and ensuring a more sustainable future for the world.
100% renewable new capacity financed
households granted with access to electricity through micro/mini-grid or solar-home systems
Norfund’s impact objectives
Norfund’s impact objective for our renewable energy investments under the development mandate is threefold:
- Increasing the supply of energy
- Increasing the share of energy from renewable sources
- Increasing access to energy
Doing so leads to economic growth, job creation and improved living standards, while mitigating climate change.
Increased energy supply
In 2022, Norfund financed 1,415 MW of new electricity generation capacity including on-grid (IPP) projects and commercial & industrial (C&I) projects. The total capacity in our portfolio was 6,593 MW, of which 1,696 MW was under construction.
In 2022, the power plants produced a total of 15.9 TWh. This is almost equivalent to the combined annual electricity consumption of Kenya, Tanzania, and Uganda.
Increased share of energy from renewable sources
In 2022, 100 percent of the new capacity financed was renewable. A total of 4,936 MW of the capacity in our portfolio is renewable. These companies produced 9.3 TWh in 2022.
renewable capacity in Norfund’s portfolio
Increased access to energy
1,814,000 new households were provided with access to electricity through mini-grid solutions or solar home systems in 2022. This is a clear reduction from last year’s record high 3.5 million, that was due to the performance of one of our renewable energy funds.
Additionally, 4.1 million units of smaller solar-powered solutions, such as lanterns, were sold to households in 2022. This is twice last year’s sales.
According to our estimates on indirect job creation, around 467,000 jobs were supported by the electricity produced by the power plants in Norfund’s portfolio in 2022.