Norway investing in renewable energy development in South Africa
Press release | Date: 23/11/2025 | Last updated: 24/11/2025 | Office of the Prime Minister
Norway is providing NOK 760 million for renewable energy development in South Africa through the Norwegian Climate Investment Fund. The funding will go to the South African company Mulilo to support wind, solar and battery energy storage projects. It is estimated that these projects combined will be able to supply electricity equivalent to the consumption of four million households in South Africa.
South Africa is in the midst of a severe energy crisis, and 85 % of the country’s power production comes from coal. The transition to renewable energy is essential to reduce emissions, ensure a stable power supply, and create jobs. Norway is a partner in the efforts to implement this transition.
Accelerating the transition
‘The world needs to triple renewable energy production by 2030. To succeed, it is vital that Africa is on board. The African continent has an abundance of sunshine, but investment in renewable energy has long been insufficient. Norway’s Climate Investment Fund is a powerful tool in the efforts to accelerate the energy transition in developing countries,’ said Prime Minister Jonas Gahr Støre.
The funding from Norway will be channelled through the Climate Investment Fund and will be used to build wind, solar, and battery systems that will supply both the national grid and large-scale commercial customers. Mulilo already has 765 MW under construction and has secured grid access for an additional 4 GW in South Africa.
Reducing emissions
‘This investment is a good example of how Norway is helping to reduce emissions, create jobs, and build a more sustainable future,’ said Mr Støre.
Norway’s Climate Investment Fund is administered by Norfund (the Norwegian investment fund for developing countries). Norfund has invested a total of NOK 3.4 billion in renewable energy development in South Africa, some NOK 1.9 billion of this through the Climate Investment Fund. In addition, since 2010, Norwegian companies such as Scatec, Aker ASA, Magnora, and Valinor have built a number of large solar power plants and wind farms in the country. Renewable energy projects in South Africa supported by Norfund helped to avoid emissions of 4.3 million tonnes of CO2 last year – equivalent to 9 % of Norway’s annual emissions.
‘South Africa has a key role to play in the global energy transition. Through the Climate Investment Fund, we provide risk capital to promote renewable energy development and help meet energy needs,’ said Tellef Thorleifsson, CEO of Norfund.