CIP Sets Up New Fund to Back 10 GW of Renewables in Middle-Income Countries

December 5, 2023, by Adnan Memija

Denmark’s Copenhagen Infrastructure Partners (CIP) has launched a new fund, which has a target size of USD 3 billion, intending to enable more than 10 GW of renewable energy capacity.

Announced during COP28, the Growth Markets Fund II (GMF II) will be focused on developing and building offshore and onshore wind, solar PV, energy storage, and Power-to-X projects in selected high-growth middle-income markets across Asia, Latin America, and EMEA, said CIP.

It is expected to deliver renewable energy infrastructure projects reflecting over USD 10 billion of capital investment.

According to CIP, renewable energy power capacity will need to at least triple by 2030 for the global community to stay on the path to net zero. To achieve these capacity goals, investments into clean energy “must more than quadruple, and middle-income and emerging markets alone will need investments of more than USD 1.9 trillion by 2030.”

“These middle-income and emerging markets represent not only a mandatory task for the industry – and we believe that they are also very attractive markets for investors seeking exposure to the some of the highest expected growth rates for renewables,” said Niels Holst, partner at CIP and co-head of GMF.

“They are estimated to account for 25% of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand.”

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GMF II, which is set to be the world’s largest fund focused on greenfield renewable energy investments in high-growth, middle-income markets, has the potential to reduce greenhouse gas emissions by more than ten million tonnes annually, while powering more than ten million homes with clean energy, according to CIP.

The launch of the new fund comes after CIP announced the first close of its fifth flagship fund, Copenhagen Infrastructure V (CI V), at EUR 5.6 billion and also reached the final close of both the Advanced Bioenergy Fund I and Green Credit Fund I which combined raised approximately EUR 2 billion.