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August 20, 2021

Nordic Impact Cooperation, owned by Finnfund and Norsk Solar, makes its first investment in Vietnam

Nordic Impact Cooperation AS (“Nordic Impact Cooperation”), owned by the Finnish Fund for Sustainable Development (“Finnfund”) and Norsk Solar AS (“Norsk Solar”, OSEBX ticker: NSOL) has made its first investment decision into a Norsk Solar-developed solar PV-project in Vietnam.

Central Retail VietnamNorsk Solar, a leading and fast-growing independent solar power producer, with a particular focus on the commercial & Industrial market in emerging markets, entered earlier in 2021 into a 11 MW long-term electricity purchase agreement with Central Retail in Vietnam, one of southeast Asia’s largest retail conglomerates (the “project”). Norsk Solar develops, builds, owns, and operates solar assets on several of Central Retail’s rooftops in the country. The project is one of the largest single-client rooftop solar PV systems in Vietnam and is currently under construction by Norsk Solar.

On 30th of April 2021, Finnfund and Norsk Solar established a unique financing platform for impact investing in developing countries, Nordic Impact Cooperation, particularly targeted towards scaling a growing commercial and industrial (“C&I”) pipeline developed by Norsk Solar. Today, Nordic Impact Cooperation made a positive investment decision for the project. Nordic Impact Cooperation will invest approximately USD 1.4 million, which in return gives ownership of 55% of the project. The remaining ownership is held by Norsk Solar with the intention of including another Nordic state-owned DFI as a shareholder. The project is already under construction with all supply and EPC contracts signed and initiated, and is expected to reach commercial operations in Q4, 2021.

“As we have seen recently with the latest IPCC report, the transition towards renewable energy, and cutting C02-emissions need to go at a significantly faster pace. Our value proposition is to offer private companies in emerging markets the ability to deploy clean energy at no up-front cost. They can reach their sustainability targets and they don’t have to compromise on the commercial side as they make significant savings on their energy bill. Together with Finnfund, we show the potential for rapid deployment of solar towards C&I, and the project with Central Retail in Vietnam is a great example”, says Øyvind Vesterdal, CEO of Norsk Solar.

“We are proud to have successfully entered into the first investment decision for the Nordic Impact Cooperation together with Norsk Solar, and we are looking forward scaling this further in the time to come and enabling the private sector in growing economies to utilize renewable energy in their operations and to take part of a much-needed transition”, says Tuomas Suurpää, Senior Investment Manager at Finnfund.

The project will generate over 300,000 MWh of clean electricity over the lifetime of the project; equivalent to offsetting more than 120,000 tonnes of CO2 emissions over the system lifetime.

Contact information:
Øyvind L. Vesterdal, Chief Executive Officer, Norsk Solar tel. +47 900 70 126,
Tuomas Suurpää, Senior Investment Manager, Finnfund tel. +358 400 382 717,

About Nordic Impact Cooperation
The Investment Company is named «Nordic Impact Cooperation AS». The capital contribution amounts to investments of EUR 15 million, with the opportunity to scale further. The funds are exclusively earmarked for Norsk Solar-developed projects within the C&I segment and other related projects across developing markets. Nordic Impact Cooperation has extensive requirements on environmental and social aspects with great focus on the UN Sustainability Goals.

About Norsk Solar
Norsk Solar is a fast-growing independent solar power producer, with 70 MW of assets built and in operation or under construction in emerging markets. The company has a project pipeline of 2 GW, where its focus is on C&I assets. Norsk Solar has offices in Norway, Ukraine, Nicaragua, South Africa, Brazil, and Vietnam.

About Finnfund
Finnfund is a Finnish development financier and professional impact investor. We build a sustainable world by investing in responsible and profitable businesses in developing countries. Each year we invest 200–250 million euros in 20-30 projects, emphasising renewable energy, sustainable forestry, sustainable agriculture, financial institutions and digital infrastructure and solutions. Today Finnfund’s investments and commitments total about 1,070 billion euros, half of them in Africa. The company has about 90 employees. 

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