Norway’s Norges Bank Investment Management has committed an investment of €900m ($1.004bn) in Copenhagen Infrastructure Partners’ renewable energy fund, CI V.
The fund will focus on renewable energy projects across multiple regions, including wind and solar.
The investment aligns with the management mandate provided by the Ministry of Finance in 2019, which supports both direct and indirect investments in unlisted renewable energy infrastructure.
The partnership will involve Copenhagen and Elgin’s retained management collectively investing £250m into the solar developer, supporting Elgin in its transition to becoming an independent power producer (IPP).
CIP and CI V will channel investments into renewable energy sources. It will invest in offshore and onshore wind farms, solar farms, as well as projects related to the grid, distribution, and energy storage.
The investment strategy for the CI V fund is geographically diverse, with the allocated funds to be evenly distributed across North America, Western Europe and selected developed countries within the Asia Pacific (APAC) region.
Norges Bank Investment Management chief investment officer real assets Mie Holstad stated: “This agreement will enable us to invest in renewable energy projects in the development stage. The investment is a valuable addition to the portfolio we are currently building.
“It will provide further investment possibilities and exposure to other parts of the value chain, as well as the opportunity to continue building knowledge and experience with new markets and technologies.
“We have worked for a long time to map out the investment risks and non-financial risks and are pleased with our choice of CIP as a partner. CIP is an experienced industrial partner with a good reputation. Our evaluations have shown that CIP has created value for investors in an open and responsible way.”
In April 2024, CIP agreed to take a majority stake in Irish solar developer Elgin Energy. The bank has invested in six renewable energy projects across Europe’s solar and wind sectors.
