Fourth Partner Energy receives 2,300 cr. Investment from International Consortium
A consortium comprising Asian Development Bank (ADB), International Finance Corporation (IFC), and Deutsche Investitions (DEG) has announced an investment of USD 275 million (about Rs. 2,308.77 crore) in Hyderabad-based Fourth Partner Energy Limited (FPEL).
FPEL has a target of achieving over 3.5 GW of Renewable Energy (RE) assets by 2026. Currently the company has 1.3 GW of Renewable Energy assets spread over India and South-east Asia.
IFC contributes the largest share, followed by ADB
IFC invested 45.45% of the total investment by the consortium in Fourth Partner Energy, which amounts to USD 125 million (about Rs. 1,049.44 crore). According to Mr. Imad N Fakhoury, IFC’s Regional Director for South Asia, “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”. He also mentioned FPEL’s profile in the Renewable Energy sector, which includes battery storage, floating solar, bifacial technology, and hybrid renewables.
ADB contributed USD 100 million (approximately Rs. 839.55 crore) out of the consortium’s total investment. ADB’s investment came from two of its own sources, Ordinary Capital Resources, and Leading Asia’s Private Infrastructure Fund 2 (LEAP 2). The major portion of ADB’s investment, that is USD 70 million (about Rs. 587.67 crore), came from Ordinary Capital Resources, a fund under ADB. The remaining USD 30 million (about Rs. 251.86 crore) was sourced from LEAP 2, a fund created by an agreement between Japan International Cooperation Agency (JICA) and ADB.
The remaining USD 50 million (approximately Rs. 419.89) out of the consortium’s total investment in Fourth Partner Energy was contributed by DEG.
Mr. Vivek Subramanian, Co-founder & Executive Director, Fourth Partner Energy, welcomed ADB and DEG as new investors, and joining the existing investor base. He also said, “…investors and lenders keep coming back as financiers because FPEL prioritises commercial viability and robust returns while focusing on scaling the business.”
However, Fourth Partner Energy hasn’t disclosed any information about the usage of the consortium’s investment.
A Brief Overview of FPEL’s Portfolio in India
Currently, FPEL’s portfolio comprises over 950 Mega Watt Peak (MWp) capacity across 25 states in India. This comprises solar projects, wind projects, and solar-wind hybrid projects.
Moreover, FPEL has around 500 MWp of RE capacity under development in Uttar Pradesh and Karnataka. This comprises a 105 MW solar power park in Babina, Uttar Pradesh, which is under construction, and 400 MW of RE plants in various stages of execution in Karnataka. As per the company, 70% work on the Babina solar park is complete as of now.
Some of FPEL’s Recently Executed RE Projects
In FY-21, FPEL commissioned its first Open Access* Solar project of 88 MW in Saharanpur, Uttar Pradesh.
Since FY-22, FPEL has commissioned 473 MWp Open Access projects in Tamil Nadu, Maharashtra, Kartnataka, Andhra Pradesh, Gujarat, Uttar Pradesh.
*Open Access is a mechanism through which RE power producers can sell power from their plants directly to the end consumer without going through a DISCOM. This mechanism is applicable if the minimum power requirement of the consumer is 1 MW.
In FY-23, Fourth Partner commissioned the first solar-wind hybrid park of 40 MW in Gondal, Gujarat. In the same year, FPEL also commissioned a 15 MW Open Access solar plant in Shahjahanpur, Uttar Pradesh.
About Fourth Partner Energy Limited: Headquartered in Hyderabad, FPEL was founded in 2010. It started as a rooftop solar EPC provider to Commercial and Industry based customers. FPEL’s profile in the Renewable Energy sector includes battery storage, floating solar, bifacial technology, and hybrid RE.
