Mumbai: Fourth Partner Energy (FPEL), a Hyderabad-based renewable energy solutions platform, on Tuesday said it has secured $275 million investment from global impact investors IFC, ADB, and DEG.
According to the official press release, the World Bank’s IFC is investing $125 million, while ADB is infusing $100 million, and Germany’s DEG is at $50 million to complete this round of fundraising.
It added that the consortium’s investment will infuse capital to fund the company’s business expansion plans which include a target portfolio of 3.5 GW of renewable energy assets by 2026.
“We welcome IFC, ADB and DEG as new partners to join our existing high quality equity investor base comprising Norfund and TPG. Fourth Partner Energy 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,” said Vivek Subramanian, co-founder and ED, Fourth Partner Energy.
The official release said that the company 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 ISTS route, in Karnataka, later this quarter.
“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,” said Imad N Fakhoury, IFC’s Regional Director for South Asia.
Fakhoury added 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,” said Fakhoury.
According to Suzanne Gaboury, ADB Director General for Private Sector Operations for ADB, investing into FPEL included $70 million from their 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,” Gaboury added.
Monica Beck, Member of DEG’s Managing Board said 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.
“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,” said Anders Blom, Vice-President at Norfund.
Norfund is the single largest investor in FPEL till date, having invested nearly $145 million into Fourth Partner Energy, through two rounds in 2021 and 2023.
