Norway’s Sovereign Wealth Fund Makes First Investment In Renewable Energy Infrastructure

Norway’s Sovereign Wealth Fund Makes First Investment In Renewable Energy Infrastructure

Share to Linkedin Norway's $1. 3 trillion sovereign wealth fund - the largest in the world - announced its first investment in renewable energy infrastructure Wednesday as part of a diversification away from bonds, equities and real estate amid a global push to fight climate change. Norges Bank Investment Management (NBIM), the asset management arm of Norway's central bank, which manages the sovereign wealth fund, agreed to acquire a 50% stake in the Borssele offshore wind farm in the Netherlands from Danish energy firm Ørsted A/S for €1. 375 billion ($1. 63 billion). When the transaction closes “” in the second or third quarter of 2021 “” Ørsted will remain the wind project's co-owner and operator. NBIM said Borssele - the second-largest operating wind farm in the world “” has a capacity of 752 megawatts and can produce enough energy to supply the annual electricity demand of about 1 million Dutch households. Line Aaltvedt, a spokeswoman for NBIM, told Forbes that the sovereign wealth fund has a mandate from Norway's parliament to invest up to 2% of the fund's assets in renewable energy assets and projects. The fund was first permitted by parliament to invest in renewable energy assets in