📋 Tender Overview
The government has proposed a new guarantee scheme for renewable energy in developing countries, and on 15 November Norad announces the first renewable guarantees. The governments guarantee scheme has a guarantee framework of NOK 5 billion. The call now has a limit of NOK 1.75 billion, which is aimed at companies and guarantee institutions. - Around 700 million people today do not have access to electricity. We must help ensure that as many people as possible have access to electricity, and that it is renewable and not fossil-based. This guarantee scheme will be an important tool to ensure more clean energy in developing countries. It is crucial for the countries to continue to develop at the same time as we take care of our climate, says Prime Minister Jonas Gahr Store.
The guarantee scheme is a new way of thinking about aid. Norway has the best credit rating there is, triple A. We use it to guarantee renewable projects so that even more private individuals dare to invest in what can be demanding markets. In addition to the fact that these are important contributions to bring about the green transition in developing countries and reduce climate emissions, this creates jobs, which we know is a key to poverty reduction, says Development Minister Anne Beathe Kristiansen Tvinnereim. 65 percent of the guarantee framework of NOK 5 billion has been set aside to guarantee together with multilateral development banks such as the World Bank, the African Bank and the Asian Bank. What is announced today is the remaining 35 percent (NOK 1.75 billion). Hoang Van Lieu maintains the solar panels on the roof of GO-Supermarket in Ha Long City, Vietnam. Norsk Solar has built solar panels on the roofs of 11 shopping centers in Vietnam, which means that the centers are powered by clean energy. The project is supported by Norways business support scheme, which helps attract investors and other financing opportunities by reducing risk.
Brandt/ Norad Emerging markets and developing countries need significant investments to reach the sustainability goals. There is a connection between countries with the greatest poverty, the lowest access to energy and the least developed financial markets. In these countries, it is difficult to attract capital for necessary energy investments. The scheme is managed by Norad. The state investment fund Norfund acts as an adviser and contributes with external risk assessment. This is groundbreaking work in Norwegian aid. By providing guarantees of NOK 5 billion, we can, based on experience from comparable schemes, mobilize investments of up to NOK 15 billion. With state guarantees as a tool, Norway will contribute to more and larger investments in renewable energy in developing countries, says Norad director Bard Vegar Solhjell.
