India’s C&I Sector Sees 3% Output Growth from Renewable Adoption, Says New BII-FCDO Impact Study

British International Investment (BII), the UK’s development finance institution and impact investor, has released a new report showing that Indian companies adopting renewable energy are achieving significant gains in productivity while sharply reducing carbon emissions.

The study, commissioned by the UK’s Foreign, Commonwealth & Development Office (FCDO), evaluates the energy consumption patterns of commercial and industrial (C&I) customers of Fourth Partner Energy (FPEL), a BII investee and one of India’s leading renewable energy providers.

Using operational data from FPEL, the report models the rise in energy consumption driven by lower renewable energy costs and assesses its impact on customers’ economic output and emissions. According to the findings, renewable power adoption among FPEL clients has generated an estimated $344 million (₹29.6 billion) in additional economic value annually—equivalent to around 3% of their total yearly output.

At the same time, FPEL’s solutions—primarily delivered through its open access solar installations—have helped Indian businesses avoid approximately 3.23 million tonnes of CO₂ emissions each year.

Speaking during COP30 in Brazil, Shilpa Kumar, Managing Director and Head of India at BII, said:
“This landmark report shows that going green makes perfect sense for Indian businesses. As global leaders gather at COP30, BII is committed to supporting the Indian economy to boost business growth while transiting to a net zero future.”

Nithya Balakrishnan, Head of Marketing & Policy Advocacy at Fourth Partner Energy, added:
“With a target of 500 GW of renewable energy by 2030, India is poised to become a leader in accelerating decarbonization, and FPEL is proud to support this commitment for the corporate sector.”

The study—developed by consultancies Itad and Steward Redqueen—also highlights BII’s role in accelerating FPEL’s growth. Since 2021, BII’s investments and mezzanine financing have enabled FPEL to transition from rooftop solar projects to large-scale open access renewable plants, helping attract further institutional investors such as the International Finance Corporation, Asian Development Bank, and DEG.

The report further outlines how recent regulatory reforms introduced by the Indian government have strengthened the viability of C&I renewable projects. Policy measures since 2022—including facilitation of interstate power sales and reductions in transmission charges—have bolstered investor confidence and improved market conditions.

The publication forms part of BII and FCDO’s ongoing evaluation programme aimed at assessing the long-term development impact of the UK’s investments across sectors, businesses, and economies.