Asset AllocationAugust 27, 2024

NBIM Commits 900M Euros to Renewable Energy Fund

Copenhagen Infrastructure Partners CI V will invest in wind, solar energy, energy distribution and storage.

Reported by Matt Toledo

Norges Bank Investment Management, manager of Norway’s $1.7 trillion sovereign wealth fund, announced Monday that it would commit 900 million euros ($1 billion) to a renewable energy fund from Copenhagen Infrastructure Partners.

The fund, Copenhagen Infrastructure Partners’ CI V, is the fund’s fifth flagship fund and will invest across renewable energy, including offshore and onshore wind, solar farms, grid and distribution, and storage. Investments from the fund will be evenly split between Western Europe, North America and developed Asia-Pacific countries.

NBIM currently allocates approximately 0.1% of its portfolio, $1.876 billion, to a renewable energy infrastructure portfolio made up primarily of direct investments; NBIM’s commitment to CIP CI V is an indirect one. In June, NBIM took a $419 million stake in U.K.-based offshore wind project Race Bank.

“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,” said Mie Holstad, CIO of real assets at NBIM, in a statement. “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.”

Other investments in NBIM’s renewable energy infrastructure include a 49% stake in the Carrascosa, Muela Cubillo, and Puylobo wind farms in Spain, and a 50% stake in Borssele 1 & 2, offshore wind farms in the Netherlands. The fund also has a 16.63% stake in the He Dreiht wind farm in Germany.

“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,” said Holstad. “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.”

Copenhagen Infrastructure Partners is one of the largest renewable energy asset managers in the world, with 28 billion euros in assets under management across 12 funds. CI V first closed in 2023 with 5.6 billion euros in commitments, with a target of 12 billion euros in commitments and potential commitments of 20 billion euros. CIP aims for its CI V fund to be the largest dedicated greenfield renewable energy fund in the world.