Fourth Partner Energy (FPEL) said on Tuesday it has secured an equity investment of $275 million from a consortium consisting of International Finance Corporation (IFC), Asian Development Bank (ADB), and Deutsche Investitions-und Entwicklungsgesellschaft (DEG).
The funding will support FPEL’s business expansion, which includes building 3.5 gigawatts (GW) of renewable energy assets by 2026, the renewable energy solution platform said.
FPEL has 1.5 GW installed green assets and is set to commission the first phase of its maiden 575-MW wind-solar hybrid project under the inter-state transmission system (ISTS) route in Karnataka later this quarter, it added.
World Bank’s IFC is investing $125 million, while ADB is infusing $100 million and Germany’s DEG$50 million.
FPEL co-founder and ED Vivek Subramanian said, “Our investors and lenders keep coming back as financiers because FPEL prioritises 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.”
Norfund is the single largest investor in FPEL, at nearly $145 million.
India’s renewables sector is expected to attract annual investment of $25 billion by 2030, with the commercial and industrial (C&I) consumer segment scaling up rapidly and attracting significant investments.
Diversified energy mix
“Our investment will help FPEL to expand its RE offerings and increase the supply of affordable, clean energy for C&I consumers across the country. Strategic investments in distributed generation through corporate PPAs are creating a new asset class, key to diversifying India’s energy mix,” said IFC’s Regional Director for South Asia Imad N Fakhoury.
For ADB, investing into FPEL includes $70 million from its ordinary capital resources and $30 million from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), administered by ADB, Suzanne Gaboury, ADB’s Director General for Private Sector Operations, said.
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 carbon dioxide reduction and energy transition in India”.
FPEL is currently developing additional capacities of 1.2 GW 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 over 300 marquee clients including Walmart, Unilever, Skoda, Hyundai, Tata Motors, Linde, Akzo Nobel, Ultratech Cement, Heidelberg, TCS and Wipro.