Fourth Partner Energy Bags USD 275 Million Equity Investment from IFC-ADB-DEG Consortium
The investment by the IFC-ADB-DEG consortium will infuse capital to fund FPEL's business expansion plans which include a target portfolio of 3.5 GW of renewable energy assets by 2026.
August 07, 2024. By News Bureau
The company has informed 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 MW wind-solar hybrid project under the Inter State Transmission System (ISTS) route, in Karnataka, later this quarter.
Announcing the closure of fund-raising, Vivek Subramanian, Co-founder and ED, Fourth Partner Energy said, “Onboarding leading DFIs as equity partners is a testament to our industry-best technical capabilities, high calibre team and strong ESG compliance. Our investors and lenders keep coming back as financiers because FPEL prioritises commercial viability and robust returns while focusing on scaling the business. We welcome IFC, ADB and DEG as new partners to join our existing high-quality equity investor base comprising of Norfund and TPG.”
Commenting on the development, Imad N Fakhoury, IFC's Regional Director for South Asia added, “Reducing the energy sector's carbon footprint is critical to realising 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 further stated 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.”
India's renewables sector is expected to attract an annual investment of USD 25 Billion through 2030, aided by the government's clarity and stability in RE policy. The commercial and industrial consumer segment has been rapidly scaling up and attracting significant investments in this space.
“For ADB, investing into FPEL includes USD 70 Mn from our ordinary capital resources and USD 30 Mn 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 the growth of the sector while helping to achieve net-zero emissions,” said Suzanne Gaboury, ADB Director General for Private Sector Operations.
She further added, “We expect 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 that the 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 commented.
FPEL has informed that the company 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 such 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 to date, having invested nearly USD 145 Mn into Fourth Partner Energy, through 2 rounds in 2021 and 2023.
please contact: contact@energetica-india.net.
Aman Mehtani
Founder & Group CEO
ADM Group Offers Smart, Sustainable Solutions for Global Automotive Industry
Gaurav Dolwani
CEO
From Scrap to Sustainability: LICO Materials’ Circular Economy Approach
Gaurav Kumar
Head of Supply Chain and Manufacturing
Euler Motors Bridges Cost Gap Between EVs and ICE Vehicles with Localization
Shveta Arya
India Region Leader
Powering India’s Mobility Future: Cummins Showcases Advanced Power Solutions at Bharat Mobility
Samkit Shah
Co-Founder
Jitendra EV Leading Hybrid EV Revolution with Hydrix