Business
Fourth Partner Energy raises $275 million from IFC-ADB-DEG consortium
HYDERABAD: Renewable energy player Fourth Partner Energy Limited (FPEL) has raised $275 million (approx. Rs 2280 crore) from a consortium comprising International Finance Corporation (IFC), Asian Development Bank (ADB) and DEG (Deutsche Investitions und Entwicklungsgesellschaft mbH).
While the World Bank Group’s IFC is investing $125 million, ADB will be infusing $100 million and Germany’s DEG will be pumping in $50 million to complete this round of fundraising.
The equity investment, which is the largest by these three players in the renewables space, will infuse capital to fund FPEL’s business expansion plans, which includes a target portfolio of 3.5 GW of renewable energy assets by 2026, FPEL said on Tuesday. The existing investors in FPEL include Norfund and TPG.
The Hyderabad-based FPEL already has an installed base of 1.5 GW of green assets and is gearing up to commission the first phase of its first 575 MW wind solar hybrid project under the inter-state transmission system (ISTS) route, in Karnataka, later during the current quarter.
The RE player is currently developing additional capacities of 1.2 GW of open access projects across Maharashtra, Uttar Pradesh, Tamil Nadu, and Gujarat while continuing its focus on ISTS, on-site solar and battery storage as key business verticals.
It has already commissioned 2,000 projects for over 300 marquee clients such as Walmart, Unilever, Skoda, Hyundai, Tata Motors, Linde, Akzo Nobel, Ultratech Cement, Heidelberg, TCS and Wipro.
Announcing the fundraise, Fourth Partner Energy co-founder and executive director Vivek Subramanian said the onboarding of the three development financial institutions (DFIs) as equity partners was a testament to the company’s technical capabilities, team and strong ESG compliance.
“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,” he added.
“Reducing the energy sector’s carbon footprint is critical to realising 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,” said IFC’s regional director for South Asia Imad N Fakhoury.
ADB’s director general for private sector operations Suzanne Gaboury said ADB was investing $70 million in FPEL through its ordinary capital resources ($70 million) and the remaining $30 million through its Leading Asia’s Private Infrastructure Fund 2 (LEAP 2).
Monica Beck, member, DEG’s Managing Board, said FPEL combining rapid growth in building a solar and wind park portfolio with the high demands of first-class clients can be a driver of CO2 reduction and energy transition in India.
As per estimates, India’s renewables sector is expected to attract an annual investment of $25 billion through 2030 with the commercial and industrial consumer segment rapidly scaling up and attracting significant investments in this space.
While the World Bank Group’s IFC is investing $125 million, ADB will be infusing $100 million and Germany’s DEG will be pumping in $50 million to complete this round of fundraising.
The equity investment, which is the largest by these three players in the renewables space, will infuse capital to fund FPEL’s business expansion plans, which includes a target portfolio of 3.5 GW of renewable energy assets by 2026, FPEL said on Tuesday. The existing investors in FPEL include Norfund and TPG.
The Hyderabad-based FPEL already has an installed base of 1.5 GW of green assets and is gearing up to commission the first phase of its first 575 MW wind solar hybrid project under the inter-state transmission system (ISTS) route, in Karnataka, later during the current quarter.
The RE player is currently developing additional capacities of 1.2 GW of open access projects across Maharashtra, Uttar Pradesh, Tamil Nadu, and Gujarat while continuing its focus on ISTS, on-site solar and battery storage as key business verticals.
It has already commissioned 2,000 projects for over 300 marquee clients such as Walmart, Unilever, Skoda, Hyundai, Tata Motors, Linde, Akzo Nobel, Ultratech Cement, Heidelberg, TCS and Wipro.
Announcing the fundraise, Fourth Partner Energy co-founder and executive director Vivek Subramanian said the onboarding of the three development financial institutions (DFIs) as equity partners was a testament to the company’s technical capabilities, team and strong ESG compliance.
“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,” he added.
“Reducing the energy sector’s carbon footprint is critical to realising 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,” said IFC’s regional director for South Asia Imad N Fakhoury.
ADB’s director general for private sector operations Suzanne Gaboury said ADB was investing $70 million in FPEL through its ordinary capital resources ($70 million) and the remaining $30 million through its Leading Asia’s Private Infrastructure Fund 2 (LEAP 2).
Monica Beck, member, DEG’s Managing Board, said FPEL combining rapid growth in building a solar and wind park portfolio with the high demands of first-class clients can be a driver of CO2 reduction and energy transition in India.
As per estimates, India’s renewables sector is expected to attract an annual investment of $25 billion through 2030 with the commercial and industrial consumer segment rapidly scaling up and attracting significant investments in this space.
