Fourth Partner Energy secures $275 million equity investment
Four major global investors, IFC, ADB and DEG, announce a $275 million investment in Fourth Partner Energy to support the expansion of its renewable energy projects in India.
| Sectors | Solar Energy, Energy Storage, Wind Energy, Onshore, Photovoltaic, Batteries |
|---|---|
| Themes | Investments & Transactions, Project Development, Financing |
| Companies | Walmart, Hyundai, Unilever, IFC, Tata Motors, Linde, Wipro, Norfund |
| Countries | India, Japan |
Fourth Partner Energy (FPEL) currently has an installed capacity of 1.5 GW and plans to commission the first phase of its 575 MW hybrid wind-solar project in Karnataka, India.
This project, developed under the Inter State Transmission System (ISTS), marks an important milestone in the company’s ambition to transform the region’s energy landscape.
The Asian Development Bank (ADB) is contributing $100 million to this global investment, of which $70 million comes from its regular resources and $30 million from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), administered by ADB.
This investment is designed to promote the decarbonization of India’s industrial sector by supporting large-scale solar projects, hybrid solar-wind projects and rooftop solar installations.
Encouraging Energy Transition
According to Suzanne Gaboury, ADB’s General Manager of Private Sector Operations, “providing commercial and industrial users in India with access to clean, renewable energy will promote growth in the sector while helping to achieve zero net emissions.” This investment by ADB aims to encourage domestic and international lenders to engage with independent power producers in this sector. Imad N Fakhoury, IFC Regional Director for South Asia, emphasizes the importance of reducing the energy sector’s carbon footprint to achieve India’s green ambitions. “Our investments will enable FPEL to increase the supply of clean, affordable energy to commercial and industrial consumers,” he asserts.
Development Projects and Partnerships
FPEL is currently developing an additional 1.2 GW of open access capacity across Maharashtra, Uttar Pradesh, Tamil Nadu and Gujarat.
The company is also focusing on ISTS projects, on-site solar and battery storage as its main business focus.
With over 2,000 projects for 300 prestigious customers such as Walmart, Unilever, Skoda, Hyundai, Tata Motors, Linde, Akzo Nobel, Ultratech Cement, Heidelberg, TCS and Wipro, FPEL is positioned as a leader in the provision of innovative, sustainable energy solutions.
Key role of the LEAP 2 Fund
LEAP 2 is a fund managed by ADB 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, education and communication services to ADB’s developing member countries.
LEAP 2’s investment in Fourth Partner Energy is its first transaction since the fund’s bailout in December 2023.
Norfund, LEAP’s largest investor to date, has invested nearly $145 million through two rounds of financing in 2021 and 2023.
“The Climate Investment Fund aims to accelerate the global energy transition through investments in emerging markets. Fourth Partner Energy is an excellent example of the realization of corporate climate solutions,” says Anders Blom, Vice President at Norfund.
ADB remains committed to achieving a prosperous, inclusive, resilient and sustainable Asia and Pacific, while continuing its efforts to eradicate extreme poverty.
