Fulfilling its future expansion goals in the renewable energy sector, Fourth Partner Energy has secured a $275 million investment from Asian Development Band, World Bank’s IFC and DEG.
The Asian Development Bank (ADB), the International Finance Corporation (IFC), and German investor DEG have invested $275 million in Fourth Partner Energy (4PE), claiming one of India’s most significant renewable energy investments recently. Together with Norfund and TPG Global, they now hold 90% of the company.
4PE founder Vivek Subramaniam announced this in Delhi this week, highlighting that the investment will aid its expansion goals. The company has a 1.5 GW portfolio and plans to expand to 3.5 GW by 2026-27.
The IFC led the investment with $125 million, followed by the ADB with $100 million and DEG with $50 million. TPG Global, an early investor, has partially exited, though the exact amount of the stake sale was not disclosed.
Subramaniam further mentioned that while the investors collectively hold a 90% stake, none have a controlling interest. He added that with the fund, they plan to collaborate on innovative financing solutions, increase investment in energy technologies, and enter new geographical regions.
Regarding the planned 3.5 GW expansion, Subramaniam explained that it would include a mix of on-site projects, state-level open access where favourable, inter-state projects, and green energy open access. Their primary focus will be on hard-to-abate sectors, which are eager to adopt green energy, reduce emissions, and earn carbon credits.
ADB, recently rebranded as a ‘climate bank’ for the Asia-Pacific region, aims to expand its commercial and industrial (C&I) business opportunities in India by investing in Fourth Partner Energy.
The bank disclosed its plans to build and replicate a sustainable model in other countries, particularly less developed ones. Mayank Choudhary, Director of Infrastructure Finance at ADB, highlighted that the company’s structure is set for growth, and it will collaborate with other investors to develop financing models that will help reduce the cost of green energy.
The IFC has previously been involved with 4PE as a debt lender, but now, as an equity partner, it expects to add value to future projects and investments. Jason B. Pellmar, IFC’s Regional Industry Manager for Infrastructure in India, mentioned that IFC’s pre-investment advisory will support 4PE’s upcoming projects, aligning with IFC’s newly established C&I strategy in India.
According to Florian Munkle, DEG’s vice president of infrastructure and energy, DEG previously invested in utility-scale renewable projects in India. Its new investment in Fourth Partner Energy fits its focus on climate impact and long-term investments.
Founded in 2010, Fourth Partner Energy specialises in renewable energy infrastructure, offering design, procurement, construction, maintenance, and operations for commercial and industrial clients. Their services include rooftop solar, open-access green energy, continuous green power, and hybrid solar, wind, and energy storage solutions.
