Evaluation of Norfund’s Investments in Renewable Energy

This evaluation assesses Norfund’s investments in renewable energy during the period 2015–2023. Its purpose is to provide the Norwegian Ministry of Foreign Affairs and Norfund with knowledge and lessons that can strengthen future investments in renewable energy and climate finance.

The report examines the extent to which Norfund’s investments have contributed to development outcomes, climate mitigation and increased access to energy, as well as whether the investments are sustainable, additional and managed efficiently. The evaluation covers investments under both Norfund’s Development Impact Mandate and the Climate Investment Fund.

The findings show that Norfund’s investments have contributed to significant development and climate impacts, including increased renewable energy production, improved access to electricity and reduced greenhouse gas emissions. The evaluation also finds that Norfund has strengthened its strategies and systems for managing and monitoring renewable energy investments over time.

At the same time, the report highlights several areas for improvement. These include how Norfund ensures the additionality of its investments, prioritisation of investments in countries with the greatest needs, strengthening its approach to corporate governance, and clarifying ambitions and priorities under the Climate Investment Fund.

The evaluation was carried out by KPMG on behalf of Norad’s Department for Evaluation and is based on document reviews, portfolio analysis, interviews, surveys and case studies from India, Madagascar and South Africa.