Increased renewable energy supply

Climate Mandate

Transitioning to a renewable energy system is essential for combating the climate crisis and ensuring a more sustainable future. Norfund contributes to this by investing in renewable energy in emerging markets under both the climate mandate and the development mandate.

Furthermore, access to energy is a fundamental prerequisite for economic growth, job opportunities, and enhanced living standards in developing countries. 

Results 2023

4,244 MW

total new renewable generation capacity financed in 2023 

Increased supply of renewable energy

In 2023, Norfund helped finance the construction of 4,244 MW of new electricity generation capacity under the climate mandate, including on-grid (IPP) projects and commercial & industrial (C&I) projects. This is a significant increase from 2,443 MW in 2022. With a total of 6,687 MW over the two years, Norfund is well on track to deliver on the ambition to finance 9 GW new capacity under the climate mandate during the strategy period 2022-2026. 

As of 31.12.2023, the total capacity in Norfund’s portfolio companies was 3,798 MW, of which 2,197 MW was installed and 1,601 MW was under construction. Of this, Norfund has helped finance the construction of 2,698 MW (greenfield*). Most of the capacity financed in 2023 has yet to reach construction and so the total capacity in the portfolio is expected to increase significantly. 

*Greenfield refers to the capacity Norfund has helped finance the construction of. Hence, it excludes the capacity already installed in the portfolio companies at the time of the investment.

Combined with 5,303 MW financed through the development mandate, Norfund’s total portfolio consists of 8,001 MW financed by the end of 2023, of which 89% is renewable. 

Read about Norfunds’ financing of renewable energy under the development mandate here.

Power plants
In 2023, the power plants in our portfolio under the climate mandate produced 5.7 TWh. Of this, 2.0 TWh was produced by power plants where Norfund has helped finance the construction. We expect this number to increase significantly the following years when more financed power plants get operational.