IFC-ADB Invest $275M in Fourth Partner Energy
Aug 06, 2024 15:12
IFC, ADB, and DEG invest USD 275 million in Fourth Partner Energy, a renewable energy solutions platform, to expand its portfolio and reach 3.5 GW by 2026.
Photograph: Toru Hanai/Reuters
New Delhi, Aug 6 (PTI) IFC, ADB and DEG on Tuesday announced an investment of USD 275 million (about Rs 2,280 crore) into renewable energy solutions platform Fourth Partner Energy Ltd (FPEL).
The consortium's investment will infuse capital to fund FPEL's business expansion plans which include a target portfolio of 3.5 GW of renewable energy assets by 2026, a statement said.
FPEL has an installed base of 1.5 GW of green assets and is set to commission the first phase of its maiden 575 MW wind solar hybrid project under the ISTS (Inter State Transmission System) route, in Karnataka, later this quarter, it said.
World Bank's International Finance Corporation (IFC) is leading the consortium with an investment of USD 125 million, while Asian Development Bank (ADB) is infusing USD 100 million and Germany's Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is at USD 50 million to complete this round of fundraising, it said.
"We welcome IFC, ADB and DEG as new partners to join our existing high quality equity investor base...FPEL 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," the company's ED Vivek Subramanian said.
"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. Strategic investments in distributed generation through corporate PPAs are creating a new asset class, key to diversifying India's energy mix," IFC's regional director for South Asia Imad N Fakhoury said.
For ADB, investing into FPEL includes USD 70 million from our ordinary capital resources and USD 30 million from Leading Asia's Private Infrastructure Fund 2 (LEAP 2), administered by ADB, multilateral funding agency's Director General for Private Sector Operation Suzanne Gaboury said.
According to an estimate, India's renewables sector is expected to attract an annual investment of USD 25 billion through 2030.
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