Global impact investors International Finance Corp., Asian Development Bank and DEG today announced an investment of $275 million into Fourth Partner Energy Ltd (FPEL), a renewable energy solutions platform in India. The consortium’s investment will fund FPEL’s business expansion plans to achieve 3.5 GW of renewable energy portfolio by 2026.
FPEL has an installed green asset base of 1.5 GW and is set to commission the first phase of its maiden 575 MW wind-solar hybrid project in Karnataka, connected to the inter-state transmission, later this quarter.
IFC, ADB and DEG join Fourth Partner’s existing equity investor base comprising Norfund and TPG.
World Bank’s IFC is investing $125 million, while ADB is infusing $100 million and Germany’s DEG $50 million to complete this round of fundraising.
“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,” said Imad N Fakhoury, IFC’s Regional Director for South Asia.
India’s renewables sector is expected to attract an annual investment of $25 billion through 2030. 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 million from our 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,” said Suzanne Gaboury, ADB Director General for Private Sector Operations.
Monica Beck, member of DEG’s Managing Board, said, “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.”
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 commissioned 2,000 projects for over 300 clients.
Norfund is the single largest investor in FPEL till date, having invested nearly $145 million through 2 rounds in 2021 and 2023.
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