Norway government increases renewable energy grants to more than $121M

In Norway, the Norwegian government increased its grants towards renewable energy from NOK 570 million (about $69 million) in 2018 to more than NOK 1 billion ($121.6 million) in 2019. In addition, they are stepping up their support to Norfund’s (Norwegian Investment Fund for Developing Countries) investments in renewable energy. This is in line with the Government’s pledge in the white paper on international development policy from 2017 (Meld. St. 24 (2016-2017)).

The Minister of International Development said, “We want the most development effect out of every krone we invest. But we also know that energy markets are in a volatile period. Going forward, we must therefore evaluate whether there is a need for new funding models for renewable energy in developing countries. Irrespective, we will actively use our assistance towards risk mitigation measures by, among other things, supporting the build up of regulatory competence in developing countries and expanding the electricity grid.”

The Minister of International Development has close dialogue with Norwegian companies and expertise-based communities engaged in developing countries. These groups point to a demanding risk picture as the biggest obstacle for investments and increased engagement in developing countries. The industry highlights in particular that the lack of risk mitigation measures, such as guarantees, limits the possibilities for investing in developing countries.