$3 billion fund to develop renewable energy projects in emerging markets including Việt Nam

COPENHAGEN — Copenhagen Infrastructure Partners (CIP) announced the Growth Markets Fund II launch during the 2023 United Nations Climate Change Conference (COP 28) in Dubai on December 4.

With a focus on developing and building offshore and onshore wind, solar PV, energy storage and Power-to-X projects in selected high-growth markets across Asia, Latin America and EMEA, including Việt Nam, the Philippines, India, etc., the fund has a target size of US$3 billion. It is expected to deliver renewable energy infrastructure projects reflecting over $10 billion of capital investment. This will enable more than 10 GW of new renewable energy capacity.

It is set to be the world’s largest fund focused on greenfield renewable energy investments in high-growth markets.

Christina Grumstrup Sørensen, Senior Partner and founder of CIP, said: “To reach net zero, we need to bring affordable, reliable, and clean energy to all parts of the world. This fund will deploy significant private capital and ensure renewable projects in countries, where it will contribute to growth and job creation and deliver substantial impact in reducing carbon emissions.”

Niels Holst, partner at CIP and co-head of GMF, added: “These growth countries represent attractive markets for investors seeking exposure to some of the highest expected growth rates for renewables. They are estimated to account for 25 per cent of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand.”

Company officials at the fund launch ceremony in Dubai. — Photo courtesy of Copenhagen Infrastructure Partners

Ole Kjems Sørensen, Partner at CIP and co-head of GMF, said: “The fund is off to a good start with a large and diversified portfolio of projects reflecting potential equity commitments of more than $5 billion – far exceeding the target fund size. We expect the fund to be a global driver in the green and just transition.”

Based on GMF II’s already existing portfolio of renewable energy development projects, the fund has the potential to reduce greenhouse gas emissions by more than 10 million tonnes annually while powering more than 10 million homes with clean energy and creating more than 100,000 full-time equivalent (FTE) years globally.

Việt Nam is one of the key focus markets for GMF II with a pipeline of renewable energy projects such as the La Gàn offshore wind project, located off the coast of Bình Thuận province. The La Gàn project has a projected capacity of 3.5GW when fully developed, with an estimated investment of $10.5 billion. When fully established, La Gàn is expected to power more than 7 million Vietnamese households and require more than 45,000 jobs. This demonstrates CIP’s commitment to supporting Vietnam’s transition to a sustainable and green economy.

Founded in 2012, Copenhagen Infrastructure Partners P/S (CIP) today is the world’s largest dedicated fund manager within greenfield renewable energy investments and a global leader in offshore wind.

The funds managed by CIP focus on investments in offshore and onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, storage, advanced bioenergy, and Power-to-X (batteries, ammonia, green hydrogen, etc).

CIP manages 12 funds, has raised approximately $28 billion for energy investments, and has established a market-leading renewables pipeline of approximately 120GW of energy projects across technologies and geographies. Almost half of this renewable energy portfolio (over 50GW) constitutes offshore wind. — VNS