A rare project financed renewable power project in Norway has seen the state’s seminal energy fund enter a direct agreement with international banks – the first time it’s done so.
Jaeren Energi’s €120 million Hog-Jaeren EnergiPark wind farm is the country’s first to receive non-recourse finance.
Unusually for Norway, the deal involved a global sponsor group developing a project jointly financed by international lenders and a grant from the Enova Energy Fund. Despite clean energy providing 90% of Norway’s power, it is a domestic-driven market; Enova has not had to closely cooperate with international banks or manage its grants in a way that’s consistent with project finance terms.
“Norway is very much new to this type of investment,” said Sindre Søndenå Andersen from Schjødt, the lenders’ Norwegian counsel. “There’s a history of these projects being developed by the state or municipality-driven vehicles.” Some small...