"Fourth Partner Energy Secures $275 Million in Funding"

Fourth Partner Energy (FPEL) announced on Tuesday that it has secured $275 million in equity investment from a consortium that includes the International Finance Corporation (IFC), Asian Development Bank (ADB), and Deutsche Investitions-und Entwicklungsgesellschaft (DEG). This funding will support FPEL’s plan to expand its renewable energy assets to 3.5 gigawatts (GW) by 2026.

The investment breakdown includes $125 million from the IFC, $100 million from ADB, and $50 million from DEG. FPEL currently has 1.5 GW of installed green assets and is preparing to commission the first phase of its 575-MW wind-solar hybrid project in Karnataka later this quarter.

Vivek Subramanian, co-founder and Executive Director of FPEL, welcomed the new investors, highlighting the company's commitment to commercial viability and robust returns. He noted, “We prioritize scaling our business and are pleased to have IFC, ADB, and DEG join our strong investor base, which already includes Norfund and TPG.” Norfund remains the largest investor in FPEL, with nearly $145 million invested.

India's renewable energy sector is expected to attract $25 billion in annual investment by 2030, driven by growth in the commercial and industrial (C&I) consumer segment. IFC’s Regional Director for South Asia, Imad N Fakhoury, stated, “Our investment will help FPEL expand its renewable energy offerings and increase the supply of affordable, clean energy across the country.”

ADB’s contribution includes $70 million from its ordinary capital resources and $30 million from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2). Suzanne Gaboury, ADB’s Director General for Private Sector Operations, emphasized the significance of the investment.

DEG’s Managing Board member Monica Beck highlighted FPEL’s rapid growth and its potential to drive carbon dioxide reduction and energy transition in India.

FPEL is also developing 1.2 GW of open access projects across Maharashtra, Uttar Pradesh, Tamil Nadu, and Gujarat. The company continues to focus on inter-state transmission systems (ISTS), on-site solar, and battery storage as key business areas. With over 300 marquee clients, including Walmart, Unilever, and Tata Motors, FPEL is well-positioned to enhance its impact in the renewable energy sector.

HBL