NextEnergy Capital has raised $480 million for its fifth investment fund, NextPower V ESG, which focuses on solar and battery storage assets in OECD countries. The fund has a 10-year investment horizon and targets mid-double-digit returns on projects in Europe, North America and Chile. The fund is in talks with more investors and plans to make a second close later this year to reach its $1.5 billion funding target, with a hard cap of $2 billion.
Cleantech Solar has signed long-term power purchase agreements with commercial and industrial customers in Tamil Nadu to develop 60 MW of open-frame solar PV projects. These projects will power manufacturing operations in fields as diverse as automotive, chemicals and education. Energy diversification contributes to stability and saves electricity costs.
South African miners are stepping up efforts to produce solar and wind power to cut costs and emissions and address an electricity crisis. JUWI South Africa is developing a 400 MW mine renewable energy project, and the country's Minerals Board expects its own power to reach 2,294 MW by 2025 and more by 2030. This will reduce carbon emissions, save costs and increase energy security.
According to the Statistical Review of World Energy report, global energy demand grew by 1% last year, but fossil fuels still dominate, accounting for 82% of supply. The industry report found that renewables accounted for 7.5% of global energy consumption, while fossil fuels remained at 82%. Electricity generation rose 2.3%, with wind and solar growing to account for 12% of electricity generation. Coal's share of electricity generation remains dominant at 35.4%. Scientists believe the world needs to reduce greenhouse gas emissions by 43% by 2030 to meet the Paris Agreement's goal of keeping temperature rises below 2 degrees Celsius.
The Canadian government, led by Prime Minister Justin Trudeau, faces the challenge of achieving net-zero emissions by 2050. The Canadian Energy Regulator (CER) has published three scenarios for the target, but has yet to make any recommendations. The report highlights that further action is needed across industries and provinces to contribute to achieving this goal. Due to high oil prices, Canadian oil production will continue to grow until the end of the decade, with the most optimistic scenario seeing crude oil production peak in 2026. The third scenario is that oil production peaks in 2035. If Canada achieves net-zero emissions by 2050, it will generate electricity using zero- or low-emissions technologies, doubling electricity demand by 2050.
Norfund, Norway's climate investment fund, and KLP, Norway's largest pension company, have committed to providing equity and guarantees for a 168 MW wind farm being developed by Enel Green Power in India. The project is expected to produce about 700 GWh per year, which will avoid the emission of about 573,000 tons of CO2 per year as India's current energy source is mainly coal. The investment is part of the Climate Investment Fund's first-year total commitment of NOK 2.14 billion, which will distribute NOK 10 billion over the next five years. The project is the third investment under the Climate Investment Fund, with KLP as co-investor. The government has committed NOK 10 billion over the next five years to fund projects that are estimated to avoid emissions of 6.2 million tonnes of CO2e per year.