Norway’s KLP is one of several investors in a new NOK 4.9bn fund that will finance three existing wind farms and future projects.

Fred Olsen Renewables (FOR) has entered into agreements with KLP, MEAG and Keppel for onshore wind farms, with KLP’s share amounting to NOK 1.6bn.

KLP's investment will initially be directed at three existing wind farms in Norway (Lista) and Sweden (Fäbodliden and Högaliden). In the long term, the project will create new wind farms in Sweden and England.

“This investment with Fred Olsen Renewables is a good way for KLP and the other institutional investors to gain access to a strong portfolio of onshore wind power investments. A long-term partnership with a developer and operator, for example FOR, provides an attractive and predictable return, while at the same time helping to reduce CO2 emissions and fulfil the ambitions of the Paris Agreement,” KLP CEO, Sverre Thornes, said.

KLP has previously invested in wind power in 2018 with the investment in Stena Renewable AB, and with the investments in Skaftåsen AB and Odal Vind AS in 2020. In addition, KLP has experience in similar investment processes in Spain. KLP investment analyst, Eric Nasby, believes that the experience from there provides good opportunities to assess the financial aspects of this project.

“We have good knowledge of Fred Olsen Renewables as a major industrial player in wind power and their behaviour with regard to KLP's requirements for responsible investments. This is an attractive and long-term investment that gives us access to a diversified portfolio of good projects with an experienced developer who will provide scale and predictability for the next five years,” Nasby said.

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