Norfund and KLP Invest in Anthem, a New Renewable Energy Platform

Norfund’s Climate Investment Fund, together with KLP, has announced a $85.8M USD (NOK 850 million) investment in Anthem, a newly established renewable energy platform in South Africa. The initiative aims to develop large-scale solar and wind power projects with a pipeline of up to 11 GW.

Anthem is being formed through the merger of African Clean Energy Developments (ACED) and EIMS Africa, with Mahlako Energy Fund, a women-owned South African investment firm, also taking a stake. At launch, Anthem will rank among South Africa’s largest renewable energy companies, with a portfolio of 2.7 GW across 17 operational projects, alongside several additional plants under construction or financing.

“Contributions on this scale are needed to accelerate the transition to renewable energy in countries such as South Africa, which is currently completely dependent on coal power,” said Development Minister Åsmund Aukrust.

The Climate Investment Fund is providing $69.15M USD (NOK 685 million), while KLP Norfund Invest (KNI), a joint venture owned by Norfund (51%) and KLP (49%), is contributing $17.1M USD (NOK 170 million). “Anthem will be a key investment in the Climate Investment Fund’s work to contribute to the transition to renewable energy in South Africa,” said Bjørnar Baugerud, head of the fund at Norfund.

KLP emphasized that the investment is expected to generate returns for its pension customers while advancing South Africa’s clean energy transition. “We firmly believe that the investment will generate a good return for KLP’s owners, while also helping to increase the production of renewable energy in South Africa,” said investment analyst Eric Nasby.

Part of the financing was enabled by the Climate Investment Fund’s exit from Scatec’s Kenhardt solar and battery project, which was acquired by Standard Bank. The sale released $44.4M USD (NOK 440 million) for new projects, with the fund reporting a 13% annual return in South African currency from the Kenhardt investment.

“Access to capital on competitive terms is crucial for us to realise our ambitious plans for renewable energy development in South Africa, and we are therefore very pleased to have Norfund and The Climate Investment Fund on board,” says James Cumming, the CEO of Anthem. “With many countries now cutting funding for aid and development, it is essential to mobilize private capital. The Climate Investment Fund does this both by investing alongside private investors and by letting private investors take over where possible,” Aukrust added.

Since its establishment in 2022, the Climate Investment Fund has invested NOK 5.6 billion in climate projects globally, helping to reduce an estimated 17.6 million tonnes of CO₂ annually.