The Norwegian Sovereign Guarantee Scheme for Renewable Energy is a 5bn NOK unfunded guarantee scheme that aims to catalyse investment for renewable energy in low- and middle-income countries. 65% of the guarantee facility is earmarked for multilateral development banks (MDBs) and the remaining 35% is open for applications from banks, and other financial institutions and intermediaries, through a call for proposals.

The scheme can cover a variety of risks, but preference will initially be for credit guarantees. Norad can normally cover up to a maximum of 50% of the addressed risk exposure and therefore needs to share the risk with one or several other professional entities. The guarantees can be provided in USD, EUR, or NOK. The pricing of the guarantee premiums will reflect the risk covered and administration costs.