Norway, Oil And Gas Giant, Will Invest In Solar Project In India, Views India As Priority Market

KLP, Norway’s largest pension provider, and the Climate Investment Fund will both make investments in Rajasthan, India’s 420-megawatt solar power project.

For a 49 per cent stake in the Thar Surya 1 project, which is being built by the Italian company Enel Green Power, the two parties will invest about 2.8 billion Indian rupees (roughly $35 million).

The Climate Investment Fund will distribute 10 billion Norwegian Kroner (roughly $1 billion) to projects over the next five years, according to a statement from the Norwegian Embassy in India.

India, which is anticipated to surpass China as the world’s most populous nation next year, was also referred to as a “priority market” by the embassy.

This occurs at the same time that Norfund, the manager of the Climate Investment Fund and a development finance institution based in Norway, has partnered with Enel Green Power to make strategic investments in India.

 “This is the first investment we are making with Enel, and together we have great ambitions to contribute with similar investments in India in the years to come,” Tellef Thorleifsson, CEO of Norfund, said in a statement issued Monday.

Despite investing in renewable energy projects, Norway is a significant exporter of fossil fuels due to its oil and gas reserves.

“In recent years, Norway has supplied between 20 and 25 per cent of the EU and United Kingdom gas demand,” Norwegian Petroleum says.

“Nearly all oil and gas produced on the Norwegian shelf is exported, and combined, oil and gas exceeds half of the total value of Norwegian exports of goods,” it adds.

According to India’s Ministry of New and Renewable Energy, the nation’s solar power capacity has increased from about 2.6 gigawatts to over 46 gigawatts over the past seven and a half years.

India has a lofty goal of reaching 175 GW of renewable energy capacity this year, excluding large hydro. India’s state minister for new and renewable energy recently said that as of June 30, installed renewable energy capacity, excluding large hydro, was at 114.07 GW.

India continues to be dependent on fossil fuels despite its goals for renewable energy. According to the Ministry of Power, fossil fuels accounted for 58.5 per cent of India’s total installed generation capacity at the end of June.

India and China, two of the biggest coal consumers in the world, insisted on a last-minute change to the Glasgow Climate Pact’s language regarding fossil fuels from a “phase out” to a “phase down” of coal at the COP26 climate change summit last year. Following initial protests, opposing nations eventually gave in.

Indian Prime Minister Narendra Modi stated in a speech at The Energy and Resources Institute’s World Sustainable Development Summit in February 2022 that he firmly believed “environmental sustainability can only be achieved through climate justice.”

“Energy requirements of the people of India are expected to nearly double in the next twenty years,” Modi said. “Denying this energy would be denying life itself to millions. Successful climate actions also need adequate financing.”

He added, “For this, developed countries need to fulfill their commitments on finance and technology transfer.”

(Adapted from WorldNewsEra.com)



Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability

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