Access to energy is a fundamental prerequisite for economic growth, job opportunities, and enhanced living standards in developing countries.
Furthermore, 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 development mandate and the climate mandate.
total new capacity financed in 2023, of which 100% renewable
renewable capacity financed in Norfund’s portfolio
households granted with access to electricity through micro/mini-grid or solar-home systems
Norfund’s impact objective
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
Fulfillment of these objectives leads to job creation and economic growth, while mitigating climate change.
Results 2023
Increased energy supply
In 2023, Norfund helped finance the construction of 557 MW of new electricity generation capacity under the development mandate (greenfield*), including on-grid independent power producer (IPP) projects and commercial & industrial (C&I) projects.
By the end of 2023, the total capacity in Norfund´s portfolio was 7,146 MW, of which 5,346 MW was installed and 1,800 MW under construction. Of this, 5,303 MW is greenfield.
*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 2,698 MW under the climate mandate, Norfund currently has a total greenfield energy portfolio of 8,001 MW.
Read about Norfund’s financing of renewable energy under the climate mandate
In 2023, the power plants in our portfolio under the development mandate produced 17.9 TWh. Of this, 10.2 TWh was produced by power plants where Norfund has helped finance the construction. This is equivalent to the combined annual electricity consumption of Tanzania and Zimbabwe.
Increased share of energy from renewable sources
All new capacity financed is renewable. By the end of 2023, 4,410 MW out of the total 5,303 MW greenfield capacity was renewable. These greenfield, renewable capacity generated 8.6 TWh of electricity in 2023.
Increased access to energy
Not all households have the opportunity or desire to connect to the electricity grid. For such households, mini-grid solutions and solar home systems play a vital role in providing access to electricity without the need for grid connection. In 2023, 420 000 households were provided with access to electricity through mini-grid solutions or solar home systems.
Furthermore, 940 000 units of smaller solar-powered solutions, such as lanterns, were sold to households in 2023.
The companies Norfund has invested in also facilitated access to electricity for numerous businesses in 2023 through the provision of solar-powered solutions, including lanterns and solar home systems that can also be used for business purposes.
