Norway's Sovereign-Wealth Fund Acquires Stake in Solar and Wind Projects

Norway's sovereign-wealth fund has made a significant investment in the renewable energy sector, acquiring a 49% stake in a portfolio of solar plants and onshore wind farms in Spain and Portugal. The fund, managed by Norges Bank Investment Management, will pay €307 million ($334 million) for the stake, with Spanish energy company Iberdrola retaining co-ownership and operational control.

The portfolio includes two solar plant projects and two onshore wind projects, collectively generating 674 megawatts of power. This capacity is equivalent to the annual electricity consumption of 350,000 Spanish households. Of the portfolio, 60% is dedicated to solar plants, while the remaining 40% focuses on onshore wind energy.

Currently, all four projects are under development and expected to be completed within the next five years, by 2025-26. Once operational, Norges Bank Investment Management will assume ownership of these projects.

This strategic investment not only showcases Norway's commitment to renewable energy but also underscores the country's proactive approach to sustainable investments. By targeting clean and renewable sources, Norway's sovereign-wealth fund is making a positive impact on the environment while seeking financial returns.