India’s renewable energy sector, a consortium comprising German investor DEG, the World Bank’s International Finance Corporation (IFC), and the Asian Development Bank (ADB) is set to invest $300 million to acquire a majority stake in Fourth Partner Energy. This Hyderabad-based firm specialises in renewable energy solutions for commercial and industrial entities.
The investment deal, valued at an enterprise worth of $1 billion, will see the consortium purchasing private equity firm TPG Capital’s 52% stake in Fourth Partner Energy. Additionally, the agreement includes an infusion of primary capital to further bolster the company’s growth trajectory. Fourth Partner Energy, which currently has an installed portfolio of 1.35 GW, aims to expand its asset base to 3.5 GW by 2025. The firm has established itself as a key player in the renewable energy market, with a clientele that includes prominent names such as Walmart, Unilever, Coca-Cola, PepsiCo, Akzo Nobel, Schneider, Skoda, Ferrero, Mars, Airtel, DMart, and ICICI Bank. TPG Capital, through its impact investment arm, The Rise Fund, initially invested $70 million in Fourth Partner Energy, acquiring a majority stake for a total of $100 million. Alongside TPG, the Norway-owned private equity fund Norfund has also invested a total of Rs 1,247 crore in the firm. The UK government-owned British International Investment (formerly CDC Group) is another notable investor, having invested Rs 250 crore in 2021. DEG, a subsidiary of the KfW Group, a Frankfurt-based state-owned investment and development bank, has a history of investments in India, including Husk Power, Annapurna Finance, and Bike Bazar. This latest investment underscores DEG’s ongoing commitment to supporting sustainable development projects in the region.
Fourth Partner Energy has also secured project finance from various international and national entities. Notably, it raised Rs 560 crore from IFC for the development of 90 MW of rooftop solar assets across India and a 75 MW solar park in Karnataka. Additional debt financing has been provided by ADB, BII, OikoCredit, responsAbility, SBI, Indian Renewable Energy Development Agency (IREDA), and Tata Cleantech Capital (TCCL). In the competitive landscape of India’s renewable energy sector, Fourth Partner Energy stands alongside rivals such as Shell-backed Cleantech Solar, Brookfield-backed CleanMax Enviro Energy, and Petronas-owned Amplus Solar. The substantial investment from DEG, IFC, and ADB is poised to enhance Fourth Partner’s capabilities, driving further innovation and expansion in the renewable energy market. This strategic investment not only highlights the confidence of global financial institutions in India’s renewable energy potential but also paves the way for Fourth Partner Energy to accelerate its mission of providing sustainable energy solutions to a broader range of commercial and industrial clients.
