Norway wealth fund says it's hard to find right green energy projects

The fund was allowed to invest in the assets after extensive discussions among Norwegian politicians about the suitability of the fund to invest in unlisted assets. ($1 = 9.2295 Norwegian crowns)

Norway's $1.1 trillion sovereign wealth fund, the world's largest, is having trouble finding suitable unlisted renewable- energy projects to invest in, its new chief executive said on Friday.

Such investments are new for the fund which, until this year, was only allowed to invest in stocks, bonds and real estate. "In our experience so far, there are many investors looking for these investments and pricing is thus not always as attractive for us," the fund's new CEO, Nicolai Tangen, told a parliamentary hearing.

"These investments are subject to the same risk and return requirements as the (fund's) other investments. In the near term, finding projects that meet these requirements may be demanding." In March, the fund said it was looking to invest some 100 billion crowns ($10.83 billion) between 2020 and 2022 in unlisted renewable projects such as wind parks and solar farms, looking first at North America and Europe.

The team at the fund looking at these investments is headed by the previous CEO, Yngve Slyngstad. The fund was allowed to invest in the assets after extensive discussions among Norwegian politicians about the suitability of the fund to invest in unlisted assets.

($1 = 9.2295 Norwegian crowns)

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