High-powered support for renewable energy projects

27 new projects will receive a total of NOK 248 million under the enterprise development scheme for renewable energy. Projects include gas production from eucalyptus, solar energy systems in schools and hospitals, increased battery capacity for energy storage, and the development of wind farms. The scheme provides companies with funding to cover the costs of feasibility studies and other expenses related to the project establishment phase. Ten of the projects are Norwegian and a further four have Norwegian partners or shareholders.

‘These are bold companies seeking to invest in sustainable energy solutions in developing countries. We are providing funding assistance at a critical, often decisive project phase that can determine whether the projects will be able to proceed. Developing countries have an enormous need for energy to continue their development processes, but this energy must be green to be sustainable for our planet. This grant scheme helps to make this possible,’ said Ms Tvinnereim.

This week, the Minister of International Development is attending the World Bank’s annual meeting in Washington DC, where the ‘Mission 300’ plan is a key focus.  According to World Bank estimates, some 600 million people in sub-Saharan Africa lack access to electricity. As a step in remedying this, the World Bank, together with the African Development Bank, has committed to providing access to electricity to 300 million people in sub-Saharan Africa by 2030. A full 26 of the 27 projects receiving funding under Norad’s enterprise development scheme are being carried out in sub-Saharan Africa, and thus are part of the effort to realise the ambitions of Mission 300.

A large proportion of the funding awarded under the scheme is going to projects involving solar power production, including both grid-based and off-grid solutions. Grants have also been awarded to several projects for wind power, bioenergy and hydropower. These are areas in which Norwegian actors have extensive expertise.

‘This scheme is popular because it is effective. The renewable energy company Mainstream Renewable Power, in which the Norwegian company Aker Horizons acquired a majority stake, is a good example of this. In last year's grant award process, the company received funding for their guarantee premium for two solar power plants totalling 150 MW. With our contribution, they have managed to generate the necessary start-up capital and have now begun construction in South Africa where there are significant energy challenges. I am very proud of this grant scheme,’ said Ms Tvinnereim.

A total of 73 companies applied for grants under Norad’s enterprise development scheme for renewable energy this year. Norad processes and assesses grant applications from Norwegian and international companies and follows up on the projects.