Fourth Partner Energy has just raised a significant $275 million in funding. This is not any investment, but its heavyweight consortium with the International Finance Corporation, Asian Development Bank, and Deutsche Investitions- und Entwicklungsgesellschaft in the mix.
PC: Mercom India
FPEL is looking to make a big push into renewable energy. It intends to set up massive 3.5 GW renewable energy assets by 2026. That is a whole lot of clean, green energy coming our way!
FPEL currently has 1.5 GW of installed green assets, but that is not all. They are on course to commission the first phase of a wind-solar hybrid project of 575 MW in Karnataka later this quarter. This indeed would be an important milestone for the progress of renewable energy in India under the ISTS route.
The World Bank’s IFC is contributing $125 million, ADB is contributing $100 million, and Germany’s DEG is contributing $50 million. FPEL co-founder and ED Vivek Subramanian expressed his elation over this development by saying that their investors and lenders keep coming back for more because they have ingrained in them the fact that ours is an entity driven by commercial viability and robust returns while scaling up the business.
Norfund remains FPEL’s largest single investor, contributing approximately $145 million to the company. With India’s renewable sector likely to attract an annual investment of $25 billion by 2030, the future seems fabulously bright.
But that is not all. This investment is not simply about the addition of more renewable energy assets; it is also about diversifying India’s energy mix. IFC’s Regional Director for South Asia, Imad N Fakhoury, emphasized that strategic investments by distributed generation through corporate PPAs are making a new asset class that would be quite important in the diversification of India’s energy mix and increasing the supply of affordable clean energy to the country’s C&I consumers.
The development also excited ADB’s Suzanne Gaboury and DEG’s Monica Beck. Gaboury noted that ADB’s investment includes $70 million from its ordinary capital resources and $30 million from Leading Asia’s Private Infrastructure Fund 2. Beck added that the fast growth of FPEL in building its solar and wind park portfolio can drive carbon dioxide reduction and energy transition in India.
Enlisting more than 300 marquee clients to its credit, big names like Walmart, Unilever, and Tata Motors, the FPEL is bound to make a big difference in the renewable energy sector. The future of clean energy in India is looking brighter than ever!
