Fourth Partner Energy secures $275 mn funding from IFC-led global consortium

A global consortium of investors led by World Bank Group’s International Finance Corporation (IFC) is investing $275 million in India’s leading renewable energy solutions platform, Fourth Partner Energy (FPEL), to fund the company’s target of achieving 3.5GW of renewable energy assets by 2026.

IFC will invest $125 million, the Asian Development Bank (ADB) will contribute $100 million, and Germany’s Deutsche Investitions (DEG) will add $50 million to complete this round of fundraising.

Fourth Partner Energy has an installed base of 1.5GW of green assets and is set to commission the first phase of its maiden 575MW wind solar hybrid project under the ISTS (Inter State Transmission System) route in Karnataka later this quarter.

Announcing the closure of fundraising, Vivek Subramanian, co-founder and executive director, Fourth Partner Energy, said, “Onboarding 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 prioritizes 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 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,” he said. 

FPEL is currently developing additional capacities of 1.2GW 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.

“This funding plays a key role in advancing our business expansion initiatives as we aim to achieve a 3.5 GW renewable energy asset portfolio by 2026,” the company said.

“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,” Imad N Fakhoury, IFC’s regional director for South Asia, said. 

“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,” Fakhoury added. 

India’s renewables sector is expected to attract an annual investment of $25 billion through 2030. 

“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. 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,” said Suzanne Gaboury, ADB director general for private sector operations. 

Monica Beck, a member of DEG’s managing board, said it was apt time 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.

Norfund, the single largest investor in FPEL till date with an investment of nearly $145 million, said it was looking forward to collaborating with IFCM ADB, and DEG on enabling further expansion of renewable energy in India.