IFC, ADB, and DEG Invest $275M in Fourth Partner Energy to Boost India's Clean Energy Capacity

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).

Global impact investors IFC, ADB, and DEG have announced a significant investment of $275 million into Fourth Partner Energy (FPEL), a leading renewable energy solutions platform in India. This funding will support FPEL’s expansion plans, aiming to achieve a portfolio of 3.5 gigawatts (GW) of renewable energy assets by 2026.

FPEL, which currently has an installed base of 1.5 GW of green assets, is preparing to launch the first phase of its 575 MW wind-solar hybrid project in Karnataka later this quarter. This project is part of the company’s broader strategy to enhance its renewable energy offerings and support India's transition to clean energy.

Vivek Subramanian, Co-founder and Executive Director of Fourth Partner Energy, welcomed the investment, stating, “Onboarding leading Development Finance Institutions (DFIs) as equity partners reflects our industry-leading technical capabilities and strong ESG compliance. With IFC, ADB, and DEG joining our investor base, FPEL is well-positioned to transform the region's clean energy landscape and support businesses in achieving their RE100 goals.”

The investment consortium is led by the World Bank’s International Finance Corporation (IFC), contributing $125 million, while the Asian Development Bank (ADB) has invested $100 million and Germany’s DEG $50 million.

IFC’s Regional Director for South Asia, Imad N Fakhoury, emphasized the importance of reducing the energy sector's carbon footprint: “FPEL is pioneering future-ready renewable energy solutions. Our investment will help expand FPEL’s renewable energy offerings and increase the supply of affordable, clean energy for commercial and industrial consumers across India. This strategic investment supports India’s green transition and diversifies the energy mix.”

ADB’s investment includes $70 million from its ordinary capital resources and $30 million from Leading Asia's Private Infrastructure Fund 2 (LEAP 2). ADB Director General for Private Sector Operations Suzanne Gaboury noted, “Our investment aims to support the clean energy transition by encouraging engagement with independent power producers and fostering growth in the sector.”

DEG’s Managing Board Member Monica Beck highlighted the timing of their investment: “We are thrilled to be part of FPEL’s growth journey. FPEL’s rapid expansion and commitment to high standards make it a key player in reducing CO2 emissions and driving India’s energy transition.”

In addition to the new funding, FPEL is working on 1.2 GW of open access projects across Maharashtra, Uttar Pradesh, Tamil Nadu, and Gujarat. The company has commissioned 2,000 projects for over 300 prominent clients, including Walmart, Unilever, and Tata Motors.

Anders Blom, Vice President at Norfund, underscored the role of investments like these in accelerating global energy transitions: “Fourth Partner Energy is a prime example of effective climate solutions for businesses. We are pleased to see strong investors like IFC, ADB, and DEG support FPEL’s mission to expand renewable energy in India.”

Norfund, the single largest investor in FPEL, has previously invested nearly $145 million through two funding rounds in 2021 and 2023.