ADB invests $100 million in fourth energy partner to boost India’s clean energy sector

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

According to Suzanne Gaboury, ADB’s Chief Executive Officer for Private Sector Operations, the investment is aimed at providing Indian commercial and industrial users with access to renewable energy, thereby supporting sector growth and moving towards net-zero emissions. “ADB’s investment will support the clean energy transition by encouraging domestic and international lenders to work with independent power producers,” Gaboury explained. LEAP 2, which includes 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 member countries. The investment in Fourth Partner Energy marks the first LEAP 2 transaction since the recent replenishment.

Recognized as India’s only integrated renewable energy solutions company serving commercial and industrial enterprises, FPEL specializes in the design, construction and maintenance of solar, wind and battery energy storage projects.

The press release further highlighted that the investment will help businesses in India and Southeast Asia transition to renewable energy. Vivek Subramanian, Co-Founder and CEO of Fourth Partner Energy, noted the continued support from investors and lenders due to the company’s focus on commercial viability and high returns. “We welcome IFC, ADB and DEG as partners to our high-quality equity investor base. Fourth Partner Energy is set to transform the clean energy landscape in the region and help businesses achieve their RE100 goals in an equitable manner,” Subramanian said.

Founded in 1966, the 68-member ADB aims to promote prosperity, inclusiveness and sustainable development in the Asia-Pacific region.

(Based on information from the agency.)