Insider Brief
- Norway’s sovereign wealth fund will invest €1.4 billion for a 49% stake in two offshore wind farms under construction in Denmark and Germany, with total commitment reaching €4 billion including construction funding.
- The Thor and Nordseecluster projects, developed and operated by RWE, will collectively generate 2,640 MW of clean energy, enough to power over 2.6 million homes, with operations expected between 2027 and 2029.
- The deal, completed without external debt, reflects Norges Bank Investment Management’s growing portfolio of unlisted renewable energy assets and alignment with long-term climate and financial goals.
Norway’s sovereign wealth fund has made one of its largest renewable energy investments to date, acquiring a nearly half stake in two offshore wind farms under construction in Europe.
Norges Bank Investment Management said in a statement it will pay €1.4 billion ($1.5 billion) for a 49% stake in the “Thor” and “Nordseecluster” wind projects in Denmark and Germany, respectively. The deal, signed March 26, values the projects at €2.87 billion in total and is expected to close by the third quarter of 2025. The fund’s overall commitment to the projects, including construction funding, is expected to reach €4 billion.
The seller, German energy giant RWE, will retain a 51% stake and remain the operator. The projects are designed to generate steady, long-term returns backed by contracted power sales, according to a statement by Norges Bank Investment Management.
The agreement was signed on 26 March 2025, with completion expected by beginning of the third quarter of 2025, according to the fund. No external debt financing will be involved in the transaction.
The two projects together will have a generating capacity of 2,640 megawatts, or enough to power more than 2.6 million homes annually once operational, according to RWE. The Thor project in Danish waters will feature 72 turbines rated at 15 megawatts each, for a total capacity of 1,080 megawatts. Nordseecluster, off the German coast, will use 104 turbines of the same size, totaling 1,560 megawatts.
Commercial operation is expected in 2027 for Thor and between 2027 and 2029 for Nordseecluster. Both wind farms are in advanced stages of construction.
The investment marks another major move by Norway’s sovereign fund into unlisted renewable energy projects. Managed by Norges Bank Investment Management, the fund controls the financial surplus generated from Norway’s petroleum revenues and is one of the world’s largest investors.
“All unlisted (or direct) investments in real estate and renewable energy infrastructure are made and managed by subsidiary structures set up by Norges Bank,” the team wrote in the statement. This allows the fund to hold physical infrastructure assets and pursue long-term investment strategies aligned with sustainability goals.
RWE, which is leading the development of both sites, is one of Europe’s largest energy companies and has been expanding its offshore wind operations to meet growing demand for clean electricity. For RWE, the sale reduces risk and provides capital to continue building out the projects without relying on debt.
“The projects will have long-term contracted revenues that provide stable cash flows and reduce risk to the projects, the organizations said in statements.
