The Oil Fund announces renewable purchases worth NOK 3.5 billion – E24

The Oil Fund announces renewable purchases worth NOK 3.5 billion – E24

The oil fund continues to buy unlisted renewables. – Taking our first step in Portugal, says Nicolae Tangen.

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The renewed purchase was announced in a press release Wednesday morning.

This includes the purchase of a 49 percent stake in the solar and onshore wind portfolio in Spain and Portugal, for which €307 million, or about NOK 3.5 billion, has been paid.

The value of the portfolio appears to be 627 million euros, equivalent to about 7.1 billion Norwegian kroner.

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– Our first step in Portugal

The seller of the stock is Iberdrola, which will continue as part owner and operator.

– We are very pleased to announce this agreement with our partner Iberdrola. We are increasing our investments in Spain, while taking our first step in Portugal. We look forward to making more quality investments in unlisted renewable energy infrastructure in the future,” says Head of the Oil Fund, Nikolai Tangen.

The portfolio consists of two solar power plants and two onshore wind power plants with a total capacity of 674 MW, equivalent to the annual electricity consumption of about 350,000 Spanish households, according to the oil fund.

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Solar makes up 60 percent of the portfolio and onshore wind 40 percent. All projects are currently under development and are expected to be completed in 2025-2026.

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More renewable purchases

Parliament decided in 2019 that the Oil Fund could be allowed to make investments in infrastructure, but only in relation to renewable energy.

The same fund also wanted to invest in other types of infrastructure, such as roads, railways and electricity networks.

The Oil Fund's most important investments are stocks and interest-bearing securities, but the Fund also owns some real estate.

The fund's first investment in renewable energy was in 2021, when it bought half of the Purcell 1 and 2 offshore wind farms in the Netherlands from Danish company Ørsted for NOK 13.9 billion. Last year, it also announced a renewed purchase of NOK 6.4 billion.

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