Sovereign Wealth Funds: The Quiet Power Behind the Energy Transition

Sovereign wealth funds are now central to the build-out of clean energy. Between 2023 and 2025, state investors accelerated allocations into utility-scale solar and wind, grid-scale storage, hydrogen and low-carbon fuels. The motivation is financial and strategic in equal measure: diversify away from volatile hydrocarbons and public equities, secure stable infrastructure-style returns, and safeguard national energy leadership in a decarbonising world.0

Below is a clear view of who is investing, what they are buying, and why it matters.

Why sovereign wealth funds matter

SWFs have three advantages that fit the energy transition. They can hold assets for decades. They can anchor very large projects that need certainty at financial close. And they often invest alongside policy makers, which helps align projects with national strategies. The result is patient capital flowing into hard assets with contracted cash flows, exactly where global developers and grids need it.

Norway’s GPFG: Oil Wealth Funding the Green Shift

Norway’s Government Pension Fund Global (GPFG) — the world’s largest sovereign fund, worth nearly $1.8 trillion — has pivoted from oil profits to renewable power. Since receiving approval to invest in unlisted infrastructure, it has built a growing portfolio of offshore wind farms, solar parks and transmission assets across Europe.

In 2025, GPFG committed $1.5 billion to Brookfield’s Global Transition Fund II, gaining exposure to solar, wind and storage projects across multiple continents. This follows direct stakes in renewable assets such as Iberdrola’s Spanish solar and wind portfolio and offshore wind farms in the North Sea.

For Norway, it’s a strategic hedge — using oil-derived capital to fund long-term, inflation-linked returns while aligning with national decarbonisation goals.

Singapore’s GIC: Scaling Asia’s Renewables and Hydrogen

Singapore’s GIC, which manages around $800 billion, sees the energy transition as a long-term growth engine. Its biggest renewable investment is a 50% stake in India’s Greenko Energy Holdings, one of the country’s largest clean energy producers, now operating over 7.5 GW across solar, wind and hydro.

Beyond India, GIC is backing next-generation technologies. It co-invested $115 million with Hy24 in InterContinental Energy’s green hydrogen projects and partnered with Malaysia’s Gentari and Greenko to develop 5 million tonnes per year of green ammonia production in India.

For GIC, renewables offer both stability and upside — steady infrastructure-style returns paired with exposure to Asia’s fastest-growing energy markets.

UAE’s Mubadala via Masdar: Global reach, portfolio depth

Abu Dhabi’s Mubadala Investment Company, with assets of roughly $280 billion, is transforming from an oil-based investor into a clean-energy powerhouse.

In 2024, Mubadala entered Japan’s renewables market with a cornerstone investment in PAG Renewables I, a $550 million solar fund targeting corporate power buyers. It also announced a $13.5 billion biofuels project in Brazil, converting a refinery to produce sustainable jet and diesel fuels.

These moves reinforce Abu Dhabi’s goal to diversify its economy, reduce oil dependency, and remain a global energy leader in a post-fossil-fuel world.

Saudi Arabia’s PIF: Powering Vision 2030

Saudi Arabia’s Public Investment Fund (PIF), valued at over $700 billion, sits at the heart of the kingdom’s Vision 2030 economic transformation. It’s responsible for developing 70% of Saudi Arabia’s planned renewable energy capacity.

Through partnerships with ACWA Power and Aramco, PIF is building over 13 GW of solar across eight new projects — including the 2 GW Sudair and 1.5 GW Shuaibah plants. It’s also the key investor behind the NEOM Green Hydrogen Project, which will produce 600 tons of hydrogen per day, making it the world’s largest.

In 2024, PIF launched Energy Solutions Co., committing $10 billion to expand hydrogen production and clean-fuel exports. Together, these projects position Saudi Arabia as a future global supplier of renewable energy and low-carbon fuels.

Qatar's QIA

Qatar’s QIA: Partnership-Led Green Investing

The Qatar Investment Authority (QIA), with over $450 billion in assets, is expanding its renewable portfolio through global partnerships. It invested €2.4 billion in RWE to support the German utility’s renewable growth and partnered with In in South Africa to develop 330 MW of wind capacity for industry clients.

In 2025, QIA increased its stake in ISAGEN, Colombia’s largest renewable utility, with a $535 million investment, and it has backed battery innovators such as How many and Ascend Elements in the U.S.

Through these collaborations, QIA combines long-term capital with technical expertise, turning Qatar’s gas wealth into sustainable assets that align with its National Vision 2030.

From Capital Pools to Climate Catalysts

Between 2023 and 2025, sovereign wealth funds evolved from passive investors to active architects of the clean-energy transition. Their investments span continents and technologies — from desert solar farms to offshore wind and hydrogen megaprojects.

These funds bring something rare to the table: long-term capital, strategic patience, and the ability to reshape entire industries. As they recycle fossil-fuel wealth into sustainable infrastructure, they aren’t just participating in the transition — they’re financing it.

Sovereign wealth funds now sit at the centre of the global energy story: transforming national savings into global sustainability, and proving that patient capital can power lasting change.