Energy access and supply

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

At the same time, transitioning to a renewable energy system is essential to addressing the climate crisis and securing a more sustainable future. Norfund contributes to this by investing in renewable energy generation, transmission and off-grid solution providers in emerging markets.

Impact in 2025

1.65 million

granted access to electricity

25.4 TWh

produced by portfolio companies

12,300MW

total new renewable capacity financed

Development rationale

Access to reliable energy is fundamental for development. Without affordable electricity, businesses cannot operate, public services are constrained, and households face limited opportunities to improve living standards. Energy poverty remains widespread in some developing countries and is a major barrier to growth, jobs, and welfare.

Investing in renewable energy and off-grid solar solutions expands access to electricity and improves reliability for households and enterprises. This enables firms to increase productivity and reduce costs, while households benefit from better services and economic opportunities, supporting growth and poverty reduction.

Visit our page about Renewable Energy

to read more about our investment rationale

Results in 2025

In 2025, Norfund helped finance the construction of 12 300 MW of new electricity generation capacity (greenfield*), including on-grid independent power producer (IPP) projects and commercial & industrial (C&I) projects.

By the end of 2025, the total capacity in Norfund’s portfolio was 17 464 MW, of which 11 399 MW was installed, and 6 066 MW was under construction. Of the total capacity, 12 045 MW qualifies as greenfield.

In 2025, the power plants in Norfund’s portfolio produced 25.4 TWh. Of this, 14.0 TWh was produced by power plants where Norfund has helped finance the construction (greenfield). This volume is  equivalent  to the combined annual electricity generated in Tanzania and Uganda in 2024.

Transmission and energy storage projects are critical to ensuring a well-functioning and reliable energy system. In 2025, Norfund made two new investments in transmission companies, and one investment in battery rental solutions.

*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.

Building on the already installed capacity, a further 6,066 MW of capacity was under construction in Norfund’s portfolio in 2025. Of the total 25.4 TWh electricity generated during the year, 20.6 TWh came from renewable sources.

In 2025, Norfund increased our investment in Erco Energía in Colombia to USD $50 million.

Increased share of energy from renewable sources

All new capacity financed by Norfund is renewable. However, the portfolio still includes non-renewable energy capacity originating from earlier investments. In 2024, the combined renewable capacity, both installed and under construction, was 89% of the total, while in 2025 it increased to 91%. The share of total electricity production that was renewable also increased from 79% to 81%.

Increased access to energy for households

Not all households have the means or desire to connect to the electricity grid. For these households, mini-grid solutions and solar home systems provide alternatives, delivering reliable electricity without the need for grid infrastructure.

In 2025, 1.65 million new households gained access to electricity through these solutions provided by Norfund’s investees. Additionally, 437,000 smaller solar-powered products, such as lanterns, and 960,000 cookstoves were sold to households from our investees, during the same period.