Global Investment Consortium Infuses $275 Million into India’s Fourth Partner Energy for Renewable Expansion

Global impact investors International Finance Corporation (IFC), Asian Development Bank (ADB), and Deutsche Investitions- und Entwicklungsgesellschaft (DEG) have collectively invested $275 million into Fourth Partner Energy (FPEL), India’s leading renewable energy solutions provider. This significant funding is aimed at supporting FPEL’s expansion plans and its target of building a portfolio of 3.5 gigawatts (GW) of renewable energy assets by 2026.

Currently, FPEL has an installed capacity of 1.5 GW and is preparing to launch the first phase of its 575 MW wind-solar hybrid project under the Inter State Transmission System (ISTS) route in Karnataka within the coming quarter.

Vivek Subramanian, Co-founder and Executive Director of Fourth Partner Energy, expressed enthusiasm about the new partnership, stating, “Bringing on board these leading development finance institutions as equity partners underscores our industry-best technical capabilities, high-caliber team, and strong ESG compliance. Our commitment to commercial viability and robust returns has attracted top financiers. With IFC, ADB, and DEG joining our existing investors Norfund and TPG, FPEL is set to drive significant advancements in the region’s clean energy landscape and support businesses in achieving their RE100 goals.”

The World Bank’s IFC is leading the consortium with an investment of $125 million, followed by ADB with $100 million and DEG contributing $50 million.

IFC’s Regional Director for South Asia, Imad N. Fakhoury, highlighted the importance of the investment: “Reducing the energy sector’s carbon footprint is essential for India’s green ambitions. FPEL is at the forefront of delivering innovative, future-ready renewable energy solutions. Our investment will help expand FPEL’s offerings and increase the availability of affordable, clean energy for commercial and industrial consumers, supporting India’s transition to a green economy.”

ADB’s investment includes $70 million from its ordinary capital resources and $30 million from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2). Suzanne Gaboury, ADB Director General for Private Sector Operations, remarked, “Our investment in FPEL aims to provide commercial and industrial users in India with clean energy, fostering sector growth and contributing to net-zero emissions. We hope this will encourage further engagement from domestic and international lenders with independent power producers.”

DEG’s Monica Beck emphasized the timeliness of the investment: “We are excited to support FPEL’s growth alongside our partners, IFC and ADB. FPEL’s rapid expansion in solar and wind energy, coupled with its high standards for client service, positions it as a key player in India’s energy transition.”

FPEL is also advancing additional projects, including 1.2 GW of open access initiatives across Maharashtra, Uttar Pradesh, Tamil Nadu, and Gujarat. The company has commissioned over 2,000 projects for more than 300 prominent clients, such as Walmart, Unilever, Skoda, Hyundai, Tata Motors, and others.

Anders Blom, Vice President at Norfund, which remains the largest investor in FPEL with nearly $145 million invested through two funding rounds, commented, “The Climate Investment Fund is dedicated to accelerating the global energy transition. Fourth Partner Energy exemplifies effective climate solutions for businesses, and we are pleased to see robust support from IFC, ADB, and DEG as we continue to expand renewable energy in India.”