There are still almost one billion people globally with no access to electricity. To reduce that number significantly without increasing CO2 emissions dramatically there is a need for massive investments in renewable energy, particularly in developing countries.
Therefore, IFU and a number of its sister organisations from Sweden, Holland and Canada, among others, have invested close to DKK 800m in JCM Power, a Canadian independent power producer developing and operating renewable energy projects in developing countries.
IFU’s investment of DKK 170m is made through the Danish SDG Investment Fund, which was established in collaboration with several Danish pension funds and a number of private investors.
“JCM Power is thrilled to complete its first large institutional equity offering with the leading strategic investors in our industry. The capital raised will allow us to implement the first six energy projects and also serve to accelerate our growth from a development company into a globally diversified power producer in high growth markets.”
Christian Wray, CEO, JCM Power
Renewable energy in Pakistan and Malawi
So far, JCM Power has developed wind projects in Pakistan and solar projects in Malawi, and a solar project in Nicaragua is underway. The aim is that the investment from the new investors should contribute to the installation of 800 megawatt solar and wind energy in total.
One of the great challenges for developing countries is the lack of competences to develop and structure large energy projects, so they can be financed on commercial terms and thereby be realized on a greater scale. Therefore, there is a need for companies like JCM Power to contribute with know-how and financing.
“In JCM Power we are convinced that we have found a strong partner with the ability to push renewable projects to bankable businesses, which is imperative for supplying developing countries with more clean energy, combating global warming as well as poverty.”
Torben Huss, CEO, IFU
Contributes to fulfilling the Sustainable Development Goals
Installing renewable energy primarily contributes to fulfilling SDG 7 and 13 regarding sustainable energy and climate action. Furthermore, production and distribution of energy have a significant indirect effect on eradicating poverty, economic growth and reducing inequalities, covered by SDG 1, 8 and 10.