Norway’s state-owned Norfund and TPG Capital’s RISE Fund have invested $100 million and $25 million respectively in Hyderabad-based Fourth Partner Energy. The Hyderabad-based company is building solar parks in Uttar Pradesh, Maharashtra, and Tamil Nadu. The proceeds from the fundraiser will be used for expansion. Fourth Partner Energy is working on strengthening its onsite and offsite solar presence in the subcontinent as well as key markets across South and Southeast Asia.
The Norwegian investment fund for developing countries has deployed about $3.3 billion to date across the world, of which about $1.5 billion has been invested in the clean energy sector.
This comes in the backdrop of India working on a so-called ‘green tariff’ policy that will let power distribution companies (discoms) supply electricity generated from clean energy projects at comparatively lower tariffs than that from coal and other conventional fuel sources.
Founded by three partners in 2010, Fourth Partner Energy focuses on building and financing solar projects across private and public sectors. It has executed solar projects with a cumulative capacity of 550 MW across 23 states for over 150 corporate and government clients.
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Fourth Partner Energy’s current portfolio includes projects for clients such as Airtel, Axis Bank, Britannia, EY, Hindustan Unilever, Glenmark, Schneider, DMart, and Walmart. The company is targeting 3 GW of installed solar capacity by 2025 and expansion of capabilities across energy storage and EV (electric vehicle) charging infrastructure.
“Norfund is an established, long-term, an institutional investor with a strong global clean energy portfolio, committed to driving impact. We are keen on leveraging this round of funding and their expertise to further cement our leadership position”, said Vivek Subramanian, co-founder and executive director, Fourth Partner Energy.
In April 2021, Fourth Partner Energy secured a $33 million line of mezzanine funding from the CDC Group. Prior to that, it received a $15 million round of funding from Swiss climate action fund ResponsAbility and a $16 million investment from a consortium of European lenders led by Symbiotics.
The company has commenced operations across Sri Lanka, Bangladesh and Vietnam. In Indonesia, 4PEL has tied up with integrated energy major Indika Energy to offer solar solutions to corporates there.
India has attracted investments to the tune of ₹1.32 lakh crore in the renewable energy sector since 2017. At present, the country’s installed renewable energy capacity is about 95 GW, including 40.5 GW of solar power.
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