Norad – Guarantees for Renewable Energy Investments in Low- and Middle-Income Countries

Enriched bilateral · Found: 2026-04-20 21:53

Call for proposals for guarantees supporting renewable energy investments in low- and middle-income countries. Private sector focused instrument.

Source: https://www.norad.no/en/for-partners/private-sector/call-for-proposals-guarantees-for-renewable-energy-investments-in-low--and-middle-income-countries/

Funding Details

Funder

Norad

Funding Goal

Mobilise investments in renewable energy in low- and middle-income countries by providing sovereign guarantees that reduce risk and lower capital costs for investors, particularly in solar, wind, and other renewable technologies.

Funding Amount

Up to NOK 1 billion available in this call round; preferred minimum guarantee size NOK 200 million. Total scheme budget NOK 5 billion. Associated with guarantee premium and administration fees (not a grant).

Deadline

Rolling basis (Rolling)

How to Apply

Interested applicants should initiate dialogue with Norad's guarantee team before submitting. Contact: guarantees@norad.no. Full call for proposals and Q&A available at the Norad website. Applications submitted via Grants Portal.

Target Region

Low- and middle-income countries (OECD ODA-eligible), up to 30% for low-income countries. First guarantee issued in Amazon and Central America.

Contact

Email: guarantees@norad.no. Norad postal address: Bygdøy allé 2, 0257 Oslo.

Last Checked

2026-04-21 00:57

Application Checklist

Eligibility

• Applicant must be a financial institution or company (Norwegian or international)
• Project must be in an OECD ODA-eligible developing country

Project Scope

• Project must focus on renewable energy production

Required Documents

• Pre-application dialogue with guarantees@norad.no strongly recommended

Constraints

• Risk sharing required — Norwegian state assumes maximum 50% of risk
• Preferred minimum guarantee size is NOK 200 million
• Guarantee premium and administration fees are the recipient's responsibility (not a grant)
• 65% of scheme budget must be co-guaranteed with multilateral development banks

Summary

Norway's Sovereign Guarantee Scheme for Renewable Energy, managed by Norad with risk assessments by Norfund, is a financial instrument (not a grant) designed to mobilise private investment in renewable energy in low- and middle-income countries. The scheme has an overall budget of NOK 5 billion and is structured as a pilot over five years starting 2025, with guarantee tenors that may extend beyond this period. Unlike traditional development aid, this is a guarantee instrument where recipients pay a guarantee premium and administration fees. The Norwegian state, with its AAA credit rating, provides sovereign guarantees that reduce capital adequacy requirements and capital costs for guarantee recipients, thereby improving the commercial attractiveness of renewable energy investments. The thematic scope covers all forms of renewable energy including solar and other renewable technologies, with priority given to countries with significant poverty reduction potential, developmental impact potential, and strong national ownership of energy transition. The scheme is flexible and can cover both portfolios and individual projects across a range of risks including commercial, political, and currency risk. Eligible applicants are financial institutions and companies — Norwegian and international — competing on equal terms. A key requirement is risk sharing with another professional party, with Norway assuming a maximum of 50% of risk. Sixty-five percent of the total budget must be co-guaranteed with multilateral development banks, while the remaining 35% can be used through other institutions or directly to companies via open competition. Geographically, any country classified as an OECD ODA-eligible developing country can receive support, with up to 30% of the budget for low-income countries. Early dialogue with Norad's guarantee team (guarantees@norad.no) is strongly recommended before application.

Historical Context

Pilot scheme with 5-year duration starting 2025; guarantee tenors may extend beyond. 65% of total budget must be guaranteed together with multilateral development banks. First guarantee of NOK 2 billion signed in December 2025 with IDB for Amazon/Central America region (together with Sweden and Denmark). Published November 2024, updated January 2026.

Why it was added

discovered from funder #412: Norad

Sources

• https://www.norad.no/en/for-partners/private-sector/call-for-proposals-guarantees-for-renewable-energy-investments-in-low--and-middle-income-countries/

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