On December 4, 2023, Copenhagen Infrastructure Partners (CIP), the main investor of the La Gan offshore wind project, announced the launch of the Growth Markets Fund II, during the 2023 United Nations Climate Change Conference (COP 28) in Dubai.
The launch took place at COP28 in Dubai
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 Vietnam, the Philippines, India etc, the fund has a target size of USD 3 billion and is expected to deliver renewable energy infrastructure projects reflecting over USD 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.
“To reach net-zero, we need to bring affordable, reliable, and clean energy to all parts of the world. This fund will be deploying significant private capital and therefore ensure renewable projects in countries, where it will contribute to growth and job creation and deliver substantial impact in terms of reducing carbon emissions,” said Christina Grumstrup Sørensen, Senior Partner and founder of CIP.
Ms. Christina Grumstrup Sørensen, Senior Partner and founder of CIP
“These growth countries represent attractive markets for investors seeking exposure to the some of the highest expected growth rates for renewables. They are estimated to account for 25% of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand,” said Niels Holst, partner at CIP and co-head of GMF.
“The fund is off to a good start with a large and diversified portfolio of projects reflecting potential equity commitments of more than USD 5 billion – far exceeding the target fund size. We expect the fund to be a global driver in the green and just transition,” said Ole Kjems Sørensen, Partner at CIP and co-head of GMF.
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 millon tonnes annually, while powering more than 10 million homes with clean energy and creating more than 100,000 full-time equivalent (FTE) years globally.
Vietnam is one of the key focus markets for GMF II with a pipeline of renewable energy projects such as the La Gan offshore wind project, located off the coast of Binh Thuan province. The La Gan project has a projected capacity of 3.5GW when fully developed, with a total estimated investment of $10.5 billion. When fully established, La Gan is expected to power more than 7 million Vietnamese households and requiring over 45,000 jobs, demonstrating CIP’s commitment to supporting Vietnam’s transition to a sustainable and green economy.