ADB Invests USD 100 Million in solar energy company Fourth Partner Energy to support Decarbonisation
Aug 06, 2024
New Delhi [India], August 6 : The Asian Development Bank (ADB) has invested USD 100 million in Fourth Partner Energy to help India's commercial and industrial sectors switch to cleaner energy through large-scale solar, solar-wind hybrid, and rooftop solar projects, the ADB said in a press release on Tuesday.
The funding includes USD 70 million from ADB's own resources and $30 million from a special fund (LEAP 2) managed by ADB. Other investors include Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and the International Finance Corporation (IFC).
"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 ADB Director General for Private Sector Operations Suzanne Gaboury. "ADB's investment will support the clean energy transition by encouraging domestic and international lenders to engage with independent power producers in this sector."
LEAP 2 is an ADB-managed fund with a USD 1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB's developing member countries.
The LEAP 2 investment in Fourth Partner Energy is its first transaction since the fund's replenishment in December 2023, the ADB said in the release.
According to the information provided by FPEL, it is India's only Integrated Renewable Energy Solutions Company which caters to Commercial and Industrial businesses.
The company offers a range of services including design, construction, and maintenance of solar, wind, and battery storage projects.
The press release added that the investment will help businesses in India and some Southeast Asian countries switch to renewable energy.
"Our investors and lenders keep coming back as financiers because FPEL prioritizes commercial viability and robust returns while focusing on scaling the business," said Fourth Partner Energy Co-founder & Executive Director Vivek Subramanian. "We welcome IFC, ADB, and DEG as new partners to join our existing high-quality equity investor base comprising of 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 and equitable manner."
ADB, established in 1966 and owned by 68 members, aims to promote a prosperous, inclusive, and sustainable Asia and the Pacific.
