April 8 (Renewables Now) - The Government Pension Fund Global, also known as the Oil Fund of Norway, will be able to invest up to NOK 120 billion (USD 12.9bn/EUR 12.4bn) in unlisted renewable energy infrastructure.
This is twice the sum it could invest under environment-related mandates to date, Norway's Ministry of Finance announced on Friday.
The sovereign wealth fund, set up in 1990 to invest the surplus revenues of the Norwegian petroleum sector, will be allowed to make the investments only through dedicated environmental mandates. The previous upper limit on such investments was NOK 60 billion.
The government noted that “a major part” of all renewable energy investment opportunities is in the unlisted market and in unlisted infrastructure projects in particular. Such investments will become part of Norges Bank’s active management, drawing on the scope for deviations from the benchmark index, according to the statement.
Norges Bank, meanwhile, which is the central bank of Norway, has said it will start with investments with partners in developed markets and projects with relatively low operational and market risk.
“The proposed regulation will enable Norges Bank to adopt a gradual approach in a relatively small market and to invest in a cost-effective manner,” said Siv Jensen, Minister of Finance.
(NOK 1.0 = USD 0.116/EUR 0.104)