Norway’s Sovereign Wealth Fund Invests in Offshore Wind Energy Projects
Providing a strong demonstration of confidence for the offshore wind energy sector and helping Germany’s RWE fend off pressure from activist investors, Norway’s sovereign wealth fund has agreed to acquire stakes in two under construction wind farms. Norges Bank Investment Management will invest $1.5 billion for 49 percent stakes in the projects RWE is developing in Denmark and Germany.
RWE has been dealing with activist shareholders who have been demanding the company take steps such as share buyback to generate more value for investors. The company during its year-end financial report said it would be exploring partners for more of its wind farm while also cutting €10 billion (US$10.8 billion) from its planned green technology investments.
Investment Details
Norges expects to close on the transactions in the third quarter of 2025 acquiring stakes in the Nordsecluster in Germany and the Tho project in Denmark. RWE has also said it would seek a 50 percent partner for a project in the UK in 2026. The company reports work is progressing on the two projects in today’s agreement as well as a new wind farm in the UK and another for the Netherlands. RWE currently operates 19 offshore wind farms.
Project Details
The projects in Germany and Denmark have the potential to provide more than 2.6 GW. Nordsecluster, located approximately 50 km (30 miles) north of the island of Juist in Germany, is being built in two phases, with Nordsecluster A with 660 MW scheduled for commissioning in 2027 and Nordsecluster B with 900 MW, scheduled for full commissioning in 2029. Thor wind farm is Denmark’s largest offshore wind farm to date. Located approximately 22 km (14 miles) off the west coast of Jutland, it will have a capacity of 1,080 MW, and full commissioning is planned for 2027.
Norges Bank Investment Management
Norges is reported to be the world’s largest sovereign wealth fund driven by the country’s oil and gas sector. It has been an investor in renewable energy since 2021 starting with a Dutch wind farm. Last year it invested in wind energy assets in the UK and solar power in Spain.