ADB Inks Loan Agreement with Fourth Partner Energy for 25 MW Photovoltaic Plant in India

The Asian Development Bank (ADB) and Fourth Partner Energy Pvt. Ltd. have signed a long-term loan agreement of up to INR 1.2 billion (around $14.7 million) for the construction and operation of a 25 MW solar photovoltaic power plant. This initiative aims to bolster the supply of clean and cost-effective energy to commercial and industrial clients. 

Situated in Tamil Nadu’s Tirunelveli district, the plant is expected to generate roughly 50.7 GWh of electricity annually, catering directly to commercial and industrial consumers. This is facilitated by India’s progressive open-access renewable energy policy, enabling direct power purchase from Independent Power Producers (IPPs). The plant will prevent approximately 41,700 tons of carbon dioxide emissions annually, which otherwise would arise from conventional fossil fuel facilities.

This is the first time ADB has directly financed a plant of this nature in the renewable energy sector.

“Open access energy procurement can play an important role in businesses achieving their net zero emissions targets,” said ADB’s Private Sector Operations Department Director General Suzanne Gaboury. “Solutions like this are being spearheaded by ADB to promote renewable energy across the region. This is ADB’s first direct financing to a renewable energy plant of this nature and is expected to crowd in international commercial financing to further decarbonize the commercial and industrial sector”.

“We are excited to add ADB to our esteemed list of green financiers as we move closer to our 3.5 GW renewable energy target by 2025.  Fourth Partner is also constructing solar and wind parks across Ottapidaram, Tuticorin, and Nandikundu in Tamil Nadu,” said Fourth Partner Energy Co-Founder and Executive Director Vivek Subramanian. “We see this project as the beginning of our long-standing partnership with ADB to deliver cleaner, affordable power to India’s commercial and industrial sector,”

Since 2007, ADB has been a strong supporter of renewable energy growth in India. It financed the IPP wind projects and also backed solar IPPs, aligning with the National Solar Mission and state policies. Fourth Partner specializes in creating and funding projects for commercial and industrial energy consumers. Their holistic approach spans assessment, design, planning, procurement, construction, operation, maintenance, and financing of pivotal solar, wind, and battery storage infrastructure.