IFC, ADB, and DEG Inject USD 275 Mn into Fourth Partner Energy for Renewable Expansion This strategic consortium aims to accelerate FPEL's ambitious expansion plans, which include a target portfolio of 3.5 GW of renewable energy assets by 2026.
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IFC, ADB, and DEG have announced a substantial investment of USD 275 million (approximately INR 2,280 crore) into Fourth Partner Energy Ltd (FPEL), a leading renewable energy solutions platform.
According to the company statement, this strategic consortium aims to accelerate FPEL's ambitious expansion plans, which include a target portfolio of 3.5 GW of renewable energy assets by 2026.
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.
The World Bank's International Finance Corporation (IFC) is leading the consortium with an investment of USD 125 million, while the Asian Development Bank (ADB) is infusing USD 100 million, and Germany's Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is funding USD 50 million to complete this round of fundraising.
Vivek Subramanian, Executive Director of FPEL, expressed enthusiasm about the new partnership, highlighting its potential to transform the region's energy sector. "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."
Imad N Fakhoury, IFC's Regional Director for South Asia, emphasised the strategic impact of the investment: "Our investment will help FPEL 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 in 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, the 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.
