ADB Invests $100 Million in Fourth Partner Energy to Support Decarbonization

ON 08/12/2024 AT 06 : 53 AM

The Asian Development Bank (ADB) has signed a $100 million equity investment with major independent power producer Fourth Partner Energy Private Limited to advance the decarbonization of India’s commercial and industrial sector through utility-scale solar, solar-wind hybrid and rooftop solar power projects and to provide cost-effective clean energy directly to users.

The financing includes $70 million from ADB’s ordinary capital resources and $30 million from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), administered by ADB. Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and the International Finance Corporation (IFC) are joint investors.

LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB’s developing member countries. The LEAP 2 investment in Fourth Partner Energy is its first transaction since the fund's replenishment in December 2023.

Fourth Partner is India’s leading renewable energy solutions platform with an established brand and proven capability to provide “energy as a service” to its customers.

Fourth Partner focuses on building and financing renewable energy projects for commercial and industrial consumers. It offers end-to-end capabilities including evaluation, design, planning, procurement, construction, operation, maintenance, and financing of critical solar, wind, and battery storage infrastructure.

This project will accelerate the decarbonization of commercial and industrial companies with high energy requirements and transition them to renewable energy, both in India and select Southeast Asian countries where the company has operations.