India’s Fourth Partner Energy raised $275 M equity investment from IFC-ADB-DEG consortium

International Finance Corporation (IFC), Asian Development Bank (ADB), and DEG—global impact investors—have announced a $275 million investment in Fourth Partner Energy (FPEL), the top platform for renewable energy solutions in India.

ADB will contribute $100 million, Germany’s DEG will contribute $50 million, and IFC will lead the consortium with a $125 million investment, according to a statement released by IFC on Tuesday.

A target portfolio of 3.5 gigawatt (GW) of renewable energy assets by 2026 will be funded by the consortium’s investment, which will provide funding for FPEL’s business expansion plans.

It is noteworthy that FPEL has 1.5 GW of installed base of green assets and is scheduled to commission the first phase of its first 575 MW wind solar hybrid project later this quarter in Karnataka under the Inter State Transmission System (ISTS) route.

“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.

India’s green goals cannot be achieved without lowering the carbon footprint of the energy sector, according to Imad N. Fakhoury, Regional Director of the IFC for South Asia.

“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 added that a new asset class is being created by strategic investments in distributed generation through corporate PPAs, which is essential 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 stated that through 2030, the government’s stable and transparent renewable energy policy is expected to contribute to the $25 billion annual investment that India’s renewables sector will draw.

Significant investments have been drawn to and the commercial and industrial (C&I) consumer segment has been growing quickly.