Norway Announces $1.5 Billion Investment in RWE Offshore Wind Farms

Norway’s sovereign wealth fund shows strong commitment to renewable energy by acquiring stakes in two major projects.

On March 31, 2025, Norway's sovereign wealth fund, Norges Bank Investment Management, revealed plans to invest $1.5 billion in two offshore wind farm projects being developed by Germany's energy company RWE. This investment will grant Norges a 49 percent stake in these under-construction projects located in Denmark and Germany, significantly bolstering its presence in the renewable energy sector.

Confidence in Offshore Wind Sector

This move signals a strong endorsement of the offshore wind energy market, which has been gaining traction as countries focus on renewable sources to combat climate change. The investment also serves to mitigate pressures that RWE has been facing from activist investors who have been advocating for actions such as share buybacks to enhance shareholder value.

RWE's decision to seek investments through partnerships aligns with its broader strategy to optimize funding for its renewable energy projects while addressing investor concerns. As part of its goals, RWE is also looking for a 50 percent partner for a future project in the United Kingdom, slated for 2026. ### Details of the Projects

The projects that Norges Bank will invest in include the Nordsecluster in Germany and the Thor wind farm in Denmark, both known for their significant energy production potential.

  • Nordsecluster: Located about 50 kilometers (approximately 30 miles) north of the island of Juist in Germany, the Nordsecluster is being developed in two phases. The first phase, Nordseecluster A, has a capacity of 660 megawatts (MW) and is scheduled for commissioning in 2027. The second phase, Nordseecluster B, will contribute an additional 900 MW, with full commissioning expected by 2029. - Thor Wind Farm: This project will be Denmark’s largest offshore wind farm to date, situated approximately 22 kilometers (about 14 miles) off the west coast of Jutland. It aims to have a capacity of 1,080 MW, with commissioning also planned for 2027. Together, these two wind farms have an anticipated total capacity exceeding 2.6 gigawatts (GW), positioning them as significant contributors to the region’s renewable energy supply.

Norges Bank's Investment Strategy

Norges Bank Investment Management stands out as one of the largest sovereign wealth funds worldwide, largely driven by the nation's oil and gas sector profits. The fund has gradually shifted its focus towards renewable energy investments, beginning with a Dutch wind farm project in 2021 and expanding to include wind and solar projects in the United Kingdom and Spain in subsequent years.

With this new investment, Norway reinforces its commitment to sustainable energy initiatives while supporting RWE in navigating the pressures of the current investment landscape. This agreement is poised to play a crucial role in the ongoing development of renewable energy infrastructure across Europe.

Conclusion

As Norway continues to expand its investments in the renewable energy sector, the $1.5 billion stake in RWE's offshore wind farms signifies both a strategic financial decision and a broader move towards sustainable energy solutions. This investment not only enhances Norway's green energy portfolio but also supports RWE in overcoming shareholder challenges while advancing essential energy projects in Europe.