The Norwegian Agency for Development Cooperation (Norad) has launched the Support for Enterprise Development in Renewable Energy in Developing Countries 2026 – Stage 1 (Insights) call for proposals. This initiative is part of a broader effort by the Norwegian government to strengthen private sector participation in renewable energy development across emerging and developing economies.

The program provides grant funding to commercial enterprises developing renewable energy projects that can increase energy access, stimulate economic growth, and support the global transition to sustainable energy systems. The funding focuses on reducing financial risks during the early stages of project development and preparing projects for investment decisions.

Through this competitive grant scheme, Norad aims to accelerate renewable energy investments in developing countries, particularly in regions where energy infrastructure gaps remain significant.

About the Norad Renewable Energy Enterprise Development Grant

The Norad Enterprise Development Scheme for Renewable Energy is a competitive grant program designed to promote private sector investments in renewable energy projects in developing countries.

The scheme aims to:

• Increase renewable energy generation capacity.

• Expand access to reliable electricity in underserved regions.

• Stimulate sustainable economic development.

• Reduce greenhouse gas emissions and promote climate mitigation.

• Encourage investment in renewable energy infrastructure.

Many developing countries face major challenges in financing renewable energy projects due to high initial risks, insufficient infrastructure, and limited private sector involvement. This grant addresses those challenges by providing financial support during the project development phase, which is often the most uncertain stage for investors.

Through this initiative, Norad hopes to catalyze investments that will ultimately result in large-scale renewable energy installations and improved energy access.

Objectives of the Grant Program

The primary objective of the Norad Renewable Energy Grant is to support the development of commercially viable renewable energy projects in developing countries.

Specific objectives include:

1. Supporting early-stage project development.

2. Reducing financial risks associated with renewable energy investments.

3. Improving energy infrastructure and grid connectivity.

4. Encouraging private sector participation in clean energy markets.

5. Accelerating the global energy transition toward renewable technologies.

By addressing investment barriers and strengthening project preparation activities, the program helps transform innovative ideas into bankable energy projects.

Types of Projects That Can Be Funded

The Norad grant supports several types of activities that help renewable energy projects move toward investment and implementation.

These include:

1. Renewable Energy Project Development Studies

The grant may support feasibility studies and development activities such as:

• Technical feasibility studies

• Environmental impact assessments

• Financial modeling and risk analysis

• Market and regulatory analysis

• Project structuring

These activities help determine whether a renewable energy project is technically and financially viable.

2. Infrastructure Enabling Grid Connection

Some renewable energy projects require additional infrastructure to connect to the national electricity grid. The grant may fund activities such as:

• Access roads to project sites

• Grid interconnection facilities

• Transmission or distribution lines necessary for energy evacuation

In cases where infrastructure is funded, ownership of the assets typically transfers to public authorities or utilities.

3. Guarantee Premiums for Debt Financing

The grant may also support the cost of guarantee premiums required for long-term project financing.

This support reduces the risk for lenders and investors, making it easier for developers to secure financing for renewable energy investments.

Funding Amount and Cost Sharing

The Norad Renewable Energy Enterprise Development Grant provides partial financial support.

Key financial conditions include:

• Grants may cover up to 50 percent of eligible project costs.

• Applicants must provide at least 50 percent co-financing through their own funds or other financing sources.

• Payments are made after costs are incurred, meaning applicants must initially cover project expenses themselves before reimbursement.

This co-financing requirement ensures that applicants have strong financial commitment and investment readiness.

Who Can Apply for the Norad Renewable Energy Grant

The program is primarily designed for commercial enterprises operating in the renewable energy sector.

Eligible applicants include:

• Renewable energy developers

• Private companies working on renewable power projects

• Energy investment companies

• Project development companies

Applications may also be submitted by consortia of eligible companies, provided each partner meets the eligibility criteria.

However, some entities are not eligible to apply directly.

Not Eligible

The following organizations generally cannot apply directly:

• Non-governmental organizations (NGOs)

• Consulting companies without ownership in the project

• Equipment suppliers

• Entities without direct involvement in the renewable energy project.

Applicants must demonstrate a significant stake in the project and active involvement in its implementation.

Eligibility Requirements

Applicants must meet several technical, financial, and organizational criteria.

Key eligibility requirements include:

1. Legal and Organizational Requirements

Applicants must:

• Be an independent legal commercial entity

• Provide accurate documentation about their organization

• Demonstrate ownership or involvement in the project

2. Technical and Operational Capacity

Applicants must show:

• Technical expertise in renewable energy development

• Administrative and operational capacity to manage projects

• Knowledge of the local context and energy sector in the project country

3. Financial Requirements

Applicants must demonstrate financial strength through:

• Audited financial accounts from previous years

• Ability to finance at least 50 percent of project costs

• Capacity to fund activities before reimbursement

In many cases, companies must show minimum turnover from commercial activities to qualify.

4. Governance and Ethical Compliance

Applicants must also demonstrate strong governance frameworks including:

• Risk management systems

• Internal control mechanisms

• Anti-corruption policies

• Ethical guidelines addressing sexual exploitation, abuse, and harassment

• Compliance with international business standards such as the UN Guiding Principles on Business and Human Rights.

Countries Eligible for Project Implementation

Projects must be implemented in developing countries eligible for Norwegian development assistance.

Eligible regions include:

• Sub-Saharan Africa

• South Asia

• Southeast Asia

• Latin America

• Middle East and North Africa

• Small Island Developing States

Examples of eligible countries include:

• Kenya

• Nigeria

• Tanzania

• Mozambique

• Nepal

• Bangladesh

• Ghana

• Uganda

• Pakistan

• Indonesia

Norad places special priority on Sub-Saharan Africa and Least Developed Countries (LDCs).

Priority countries may include:

• Malawi

• Mozambique

• Nepal

• Nigeria

• Somalia

• Tanzania

  Application Process

  The Norad Renewable Energy Grant uses a two-stage application process.

  Stage 1: Concept Note Submission

  Applicants must first submit:

  • A concept note describing the project

  • Audited financial accounts

  • Confirmation of eligibility criteria

  The concept note provides an overview of the proposed project and allows Norad to assess its potential impact and feasibility.

Stage 2: Full Application

Applicants who pass Stage 1 will be invited to submit a detailed proposal including:

• Full project documentation

• Financial models

• Implementation plans

• Additional supporting materials

Only shortlisted applicants proceed to this stage.

Apply here

How to Apply

Applications must be submitted through Norad’s official grants portal.

Applicants should carefully review:

• Eligibility requirements

• Application instructions

• Required documentation

• Evaluation criteria

Evaluation and Selection Process

Applications are evaluated based on multiple factors including:

• Technical feasibility of the project

• Financial viability

• Development impact

• Contribution to renewable energy access

• Alignment with Norad’s priorities

• Applicant experience and capacity

Because the program is highly competitive, meeting eligibility requirements does not guarantee funding. Norad typically signs 10–20 grant agreements per call, depending on available funding and application quality.

Key Benefits of the Norad Renewable Energy Grant

The grant provides several advantages for renewable energy companies:

1. Reduced Investment Risk – Funding helps reduce financial risk during the early development phase.

2. Increased Access to Project Financing – Support for guarantee premiums improves access to loans and investment capital.

3. Expansion into Emerging Markets – Companies can expand renewable energy projects into high-growth developing markets.

4. Contribution to Climate Goals – Projects contribute to global climate mitigation by increasing renewable energy capacity.

Important Deadline

Applicants must submit their Stage 1 concept note before:

24th March 2026

Late applications will not be accepted.

The Norad Renewable Energy Grant 2026 represents a significant opportunity for commercial renewable energy developers and private companies seeking to expand energy projects in developing countries. By providing financial support during early project development, the program helps reduce investment risks, unlock financing opportunities, and accelerate renewable energy deployment in regions where access to electricity remains limited.

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