The International Finance Corporation (IFC), Asian Development Bank (ADB), and Deutsche Investitions- und Entwicklungs gesellschaft (DEG) have announced an investment of $275 million (approximately Rs 2,280 crore) in renewable energy solutions platform Fourth Partner Energy Ltd (FPEL). This consortium's investment aims to fund FPEL's business expansion plans, targeting a portfolio of 3.5 GW of renewable energy assets by 2026.

FPEL currently has an installed base of 1.5 GW of green assets and is preparing to commission the first phase of its 575 MW wind-solar hybrid project under the Inter State Transmission System (ISTS) route in Karnataka later this quarter.

The investment is led by IFC with $125 million, followed by ADB with $100 million, and DEG contributing $50 million. This round of fundraising will significantly bolster FPEL's capacity to expand its renewable energy offerings and increase the supply of affordable, clean energy for commercial and industrial consumers across India.

"We welcome IFC, ADB, and DEG as new partners to join our existing high-quality equity investor base", said Vivek Subramanian, Executive Director of FPEL. "FPEL is now poised to transform the region's clean energy landscape and assist more businesses in reaching their RE100 goals in a just, equitable manner".

IFC's regional director for South Asia, Imad N. Fakhoury, emphasized the strategic importance of this investment. "Our investment will help FPEL expand its renewable energy offerings and increase the supply of affordable, clean energy for commercial and industrial consumers across the country. Strategic investments in distributed generation through corporate PPAs are creating a new asset class, key to diversifying India's energy mix", he stated.

ADB's Director General for Private Sector Operation, Suzanne Gaboury, detailed the bank's investment structure, which 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.

India's renewable energy sector is projected to attract an annual investment of $25 billion through 2030, reflecting the country's robust growth and commitment to sustainable energy solutions. This significant investment from IFC, ADB, and DEG underscores the growing international confidence in India's renewable energy potential.