ADB Invests $100 Million in Fourth Partner Energy to Boost India's Clean Energy Sector

The Asian Development Bank (ADB) has invested $100 million in Fourth Partner Energy to assist India’s commercial and industrial sectors in transitioning to cleaner energy. This includes solar projects funded by ADB and other international investors. The initiative aims to promote net-zero emissions and sustainable growth.

The Asian Development Bank (ADB) has invested $100 million into Fourth Partner Energy, targeting India's commercial and industrial sectors to facilitate a shift towards cleaner energy. This significant investment includes $70 million from ADB's own reserves and $30 million from a special fund, LEAP 2, managed by ADB. Additional contributions come from Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and the International Finance Corporation (IFC).

According to ADB Director General for Private Sector Operations Suzanne Gaboury, this investment aims to provide India's commercial and industrial users with access to renewable energy, thereby fostering sectoral growth and working towards net-zero emissions. "ADB's investment will support the clean energy transition by encouraging domestic and international lenders to engage with independent power producers," Gaboury explained. LEAP 2, containing a $1.5 billion commitment from the Japan International Cooperation Agency, focuses on projects that reduce carbon emissions, improve energy efficiency, and provide essential services to ADB's member countries. The investment in Fourth Partner Energy marks LEAP 2's first transaction since its recent replenishment.

FPEL, identified as India's only Integrated Renewable Energy Solutions Company serving commercial and industrial businesses, specializes in designing, constructing, and maintaining projects encompassing solar, wind, and battery storage.

The press release further emphasized that this investment will aid businesses in India and Southeast Asia in transitioning to renewable energy. Vivek Subramanian, Co-founder & Executive Director of Fourth Partner Energy, noted the continued support from investors and lenders due to the company's focus on commercial viability and strong returns. "We welcome IFC, ADB, and DEG as partners to our high-quality equity investor base. Fourth Partner Energy is set to transform the region's clean energy landscape and help businesses achieve their RE100 goals equitably," Subramanian stated.

Established in 1966, ADB is owned by 68 members and strives to promote a prosperous, inclusive, and sustainable Asia and the Pacific.

(With inputs from agencies.)