Norway’s sovereign wealth fund is making a major push into renewable energy. Norges Bank Investment Management (NBIM), which manages the country’s $1.8 trillion oil fund, announced it has acquired a 49% stake in two offshore wind projects in Denmark and Germany from German energy giant RWE for €1.4 billion ($1.5 billion).
The investment is part of NBIM’s broader strategy to increase exposure to infrastructure that supports the global energy transition, aligning with Norway’s efforts to diversify its wealth beyond fossil fuels. The deal signals growing investor confidence in offshore wind as a cornerstone of Europe’s clean energy ambitions.
The Projects: Scaling Up European Offshore Wind
The transaction covers two major offshore wind developments:
- Nordseecluster (1.6 GW): Located in the German North Sea, this project is being built in two phases, with construction starting in 2025 and full completion expected by 2029.
- Thor (1.1 GW): Set to become Denmark’s largest offshore wind farm, Thor is expected to be fully operational by 2027.
Once completed, these projects will generate enough power to supply over 2.6 million households in Germany and Denmark, contributing significantly to Europe’s renewable energy capacity.
Why This Matters
NBIM expects its share of construction costs to reach approximately €4 billion, underscoring the massive capital investment required for offshore wind expansion. The deal also reflects the increasing role of institutional investors in financing large-scale renewable infrastructure.
For RWE, the transaction fits into a broader strategy of active portfolio management, allowing the company to reduce its capital commitments while retaining control over operations. RWE will maintain a 51% stake in the projects and oversee construction and long-term management.
A Shift in Energy Investment
Norway’s oil fund, one of the world’s largest sovereign wealth funds, was built on petroleum revenues. Yet, it has been steadily shifting toward sustainable investments. By backing offshore wind, NBIM is positioning itself at the forefront of the renewable energy transition—while still seeking strong financial returns.
RWE CEO Markus Krebber emphasized the strategic benefits of bringing in external investors, stating:
“By selling down and entering partnerships for our projects, we reduce our capital employed for projects under construction, and our partner gets stakes in highly attractive projects.”
With governments across Europe ramping up clean energy targets, large-scale deals like this will likely become more common as institutional investors play a bigger role in shaping the future of the energy sector.