Fourth Partner Energy Secures $275 Million Equity Investment From IFC-ADB-DEG Consortium

New Delhi, August 6, 2024: Global impact investors IFC, ADB and DEG today announced an investment of $275 Mn into India's leading renewable energy solutions platform, Fourth Partner Energy (FPEL). The consortium's investment 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.

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 ISTS (Inter State Transmission System) route, in Karnataka, later this quarter.

Announcing the closure of fund-raising, Vivek Subramanian, Co-founder & ED, Fourth Partner Energy said, "on boarding leading DFIs as equity partners is testament to our industry-best technical capabilities, high caliber 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. 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."

World Bank's IFC is leading the consortium with an investment of $125 Mn, while ADB is infusing $100 Mn and Germany's DEG is at $50 Mn to complete this round of fundraising.

"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.  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," added Imad N Fakhoury, IFC's Regional Director for South Asia.

India's renewables sector is expected to attract an annual investment of $25 Bn through 2030, aided by the government's clarity and stability in RE policy.  The C&I (Commercial and Industrial) consumer segment has been rapidly scaling up and attracting significant investments in this space.

"For ADB, investing into FPEL includes $70 Mn from our ordinary capital resources and $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 growth of the sector while helping to achieve net-zero emissions," said Suzanne Gaboury, ADB Director General for Private Sector Operations. "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 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.

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 Mn into Fourth Partner Energy, through 2 rounds in 2021 and 2023.

About Fourth Partner Energy:

 Fourth Partner Energy is India's leading renewable energy company focusing on building and financing RE projects and providing decarbonization solutions to commercial, industrial and institutional entities. It 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, 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. The firm has an international presence in 5 countries including Indonesia, Vietnam, Sri Lanka and Bangladesh.

About ADB:

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB's developing member countries. The LEAP 2 investment in Fourth Partner Energy is its first transaction since the fund's replenishment in December 2023.

About DEG:

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH has a development policy mandate to finance and advise private enterprises that invest in developing countries as an important driver of employment and income. These investments in developing countries are often made possible under challenging conditions. DEG's current portfolio is worth EUR 9.9 billion and covers around 600 investments.

About Norfund:

Norfund is the Norwegian Investment Fund for developing countries, investing to create jobs, improve lives and support the transition to net zero. Norfund is owned and funded by the Norwegian Government and is the Government's most important tool for strengthening the private sector in developing countries, and for reducing poverty. Norfund's committed portfolio totals 3.6 billion USD in Sub-Saharan Africa, South/Southeast Asia, and Latin America. Norfund has four investment areas: Renewable Energy, Financial Inclusion, Scalable Enterprises and Green Infrastructure. The Climate Investment Fund, managed by Norfund, became operative in 2022. For more information, please visit: www.norfund.no

About IFC:

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org. 

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