In a significant move to accelerate South Africa’s clean energy transition, Norfund’s Climate Investment Fund and KLP, Norway’s largest pension company, have announced a joint investment of NOK 850 million (approximately $86 million) to establish a new renewable energy platform named Anthem.
Anthem is set to become a major player in South Africa’s energy landscape, with ambitious plans to develop up to 11 gigawatts (GW) of solar and wind power capacity. This scale of development positions Anthem as one of the most impactful renewable energy initiatives in the region.
The platform is the result of a strategic merger between two established South African renewable energy companies; African Clean Energy Developments (ACED) and EIMS Africa. In addition, Mahlako Energy Fund, a local investment firm focused on energy infrastructure, is joining as a co-investor, further strengthening the platform’s local roots and expertise.
The investment is structured as follows:
- Norfund’s Climate Investment Fund is contributing NOK 685 million (approx. $69.2 million) directly.
- KLP Norfund Invest (KNI), a joint venture between Norfund (51%) and KLP (49%), is investing an additional NOK 170 million (approx. $17.2 million).
This blended investment approach reflects a growing trend in climate finance, leveraging public-private partnerships to de-risk large-scale renewable energy projects in emerging markets.
Bjørnar Baugerud, Head of the Climate Investment Fund at Norfund, emphasized the strategic importance of the investment:
Anthem will be a key investment in the Climate Investment Fund’s efforts to support the transition to renewable energy in South Africa, making a significant contribution in terms of avoided emissions, while also ensuring the country has reliable access to the energy needed for growth out of poverty.
South Africa, which has faced persistent energy shortages and a heavy reliance on coal, stands to benefit significantly from Anthem’s development pipeline. The platform’s focus on utility-scale solar and wind projects aligns with national goals to diversify the energy mix, reduce carbon emissions, and improve grid reliability.
This initiative showcases how climate-aligned capital from institutional investors can be mobilized to support transformative infrastructure in emerging economies. By combining Norfund’s development finance expertise with KLP’s long-term investment strategy, Anthem is poised to deliver both environmental impact and inclusive economic growth.
