Global impact investors International Finance Corporation (IFC), Asian Development Bank (ADB) and DEG have announced an investment of $275 million into India’s leading renewable energy solutions platform, Fourth Partner Energy (FPEL).
IFC said in a statement on Tuesday that IFC is leading the consortium with an investment of $125 million, while ADB is infusing $100 million and Germany’s DEG is at $50 million to complete this round of fundraising.
The consortium’s investment will infuse capital to fund FPEL’s business expansion plans which include a target portfolio of 3.5 gigawatt (GW) of renewable energy assets by 2026.
It is noted that FPEL has an installed base of 1.5 GW of green assets and is set to commission the first phase of its maiden 575 megawatt (MW) wind solar hybrid project under the Inter State Transmission System (ISTS) route, in Karnataka, later this quarter.
“On boarding leading DFIs as equity partners is testament to our industry-best technical capabilities, high caliber team and strong environmental, social, and governance (ESG) compliance,
“Our investors and lenders keep coming back as financiers because FPEL prioritizes commercial viability and robust returns, while focusing on scaling the business,” said Vivek Subramanian, Co-founder and Executive Director of FPEL.
“We welcome IFC, ADB and DEG as new partners to join our existing high quality equity investor base comprising of Norfund and TPG,
“FPEL is now poised to transform the region’s clean energy landscape and assist more businesses in reaching their RE100 goals in a just, equitable manner,” he added.
Imad N Fakhoury, IFC’s Regional Director for South Asia, said reducing the energy sector’s carbon footprint is critical to realizing India’s green ambitions.
“FPEL is pioneering innovative, future-ready renewable energy solutions, including battery storage, hybrid renewables, floating solar, and bifacial technology,
“Our investment will help FPEL to expand its renewable energy offerings and increase the supply of affordable, clean energy for commercial and industrial consumers across the country,” he noted.
He also noted that strategic investments in distributed generation through corporate PPAs are creating a new asset class, key to diversifying India’s energy mix.
“Together with our partners, we aim to support India’s green transition and make a meaningful impact on the country’s sustainable energy journey,” he added.
It is noted that India’s renewables sector is expected to attract an annual investment of $25 billion through 2030, aided by the government’s clarity and stability in renewable energy policy.
The commercial and industrial (C&I) consumer segment has been rapidly scaling up and attracting significant investments in this space.
“For ADB, investing into FPEL includes $70 million from our ordinary capital resources and $30 million from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), administered by ADB,
“Providing commercial and industrial users in India with access to clean and renewable energy will foster growth of the sector while helping to achieve net-zero emissions,” said Suzanne Gaboury, ADB Director General for Private Sector Operations.
She expects that ADB’s investment will support the clean energy transition by encouraging domestic and international lenders to engage with independent power producers in this sector.
Monica Beck, Member of DEG’s Managing Board, believes time is apt to contribute to India’s ambitious renewable energy development goals.
“We are delighted to be part of FPEL’s important growth journey, together with our partners IFC and ADB,
“FPEL combines rapid growth in building a solar and wind park portfolio with the high demands of first-class clients and can thus be a driver of CO2 reduction and energy transition in India” she added.
According to the statement, FPEL is currently developing additional capacities of 1.2 GW of open access projects across Maharashtra, Uttar Pradesh, Tamil Nadu, and Gujarat; while continuing to focus on ISTS, on-site solar and battery storage as key business verticals.
The firm has 2,000 projects commissioned for over 300 marquee clients including Walmart, Unilever, Skoda, Hyundai, Tata Motors, Linde, Akzo Nobel, Ultratech Cement, Heidelberg, TCS and Wipro.
“The Climate Investment Fund aims to accelerate the global energy transition through renewable energy investments in emerging markets. Fourth Partner Energy is a good example, delivering well on climate solutions for businesses,
“We are pleased to welcome strong investors as IFC, ADB and DEG, and look forward to collaborating on enabling further expansion of renewable energy in India,” added Anders Blom, Vice President at Norfund.
Norfund is the single largest investor in FPEL till date, having invested nearly $145 million into FPEL, through two rounds in 2021 and 2023.
FPEL is India’s leading renewable energy company focusing on building and financing renewable energy projects and providing decarbonization solutions to commercial, industrial and institutional entities.
The firm offers end-to-end capabilities including evaluation, design, planning, procurement, construction, operation, maintenance and financing of critical solar, wind and battery storage infrastructure, alongside EV charging solutions.
With an installed asset base of 1.5 GW across both distributed and open access portfolios, the firm has now embarked on its journey to expand beyond traditional clean energy solutions including wind-solar hybrid, electric vehicle (EV) charging infrastructure, battery storage and floating solar.
The firm has a pan-India presence with its headquarters in Hyderabad and offices in 13 other cities including Pune, Gurgaon, Mumbai, Bengaluru, Kolkata.
It has an international presence in five countries including Indonesia, Vietnam, Sri Lanka and Bangladesh.
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