ADB Invests $100 Million in Fourth Partner Energy for Clean Energy in India
The Asian Development Bank (ADB) has invested $100 million in Fourth Partner Energy to help India’s commercial and industrial sectors switch to cleaner energy. This investment includes $70 million from ADB’s own resources and $30 million from the LEAP 2 fund, managed by ADB. Other investors include Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and the International Finance Corporation (IFC).
ADB Director General for Private Sector Operations Suzanne Gaboury said, “Providing commercial and industrial users in India with access to clean and renewable energy will foster growth of the sector while helping to achieve net-zero emissions.”
LEAP 2 is a fund with a $1.5 billion commitment from the Japan International Cooperation Agency, focusing on sustainable projects that reduce carbon emissions and improve energy efficiency. The LEAP 2 investment in Fourth Partner Energy is its first transaction since the fund’s replenishment in December 2023.
Fourth Partner Energy, India’s only Integrated Renewable Energy Solutions Company, offers services including design, construction, and maintenance of solar, wind, and battery storage projects. The investment will help businesses in India and Southeast Asia switch to renewable energy.
Fourth Partner Energy Co-founder & Executive Director Vivek Subramanian said, “Our investors and lenders keep coming back as financiers because FPEL prioritizes commercial viability and robust returns while focusing on scaling the business. We welcome IFC, ADB, and DEG as new partners to join our existing high-quality equity investor base comprising of Norfund and TPG. Fourth Partner Energy is now poised to transform the region’s clean energy landscape and assist more businesses in reaching their RE100 goals in a just and equitable manner.”
ADB, established in 1966 and owned by 68 members, aims to promote a prosperous, inclusive, and sustainable Asia and the Pacific.
Doubts Revealed
ADB -: ADB stands for Asian Development Bank. It is a bank that helps countries in Asia, including India, by giving them money for projects that can improve their economies and lives.
Fourth Partner Energy -: Fourth Partner Energy is a company in India that helps businesses use clean energy like solar power instead of dirty energy like coal.
clean energy -: Clean energy is energy that does not pollute the air or harm the environment. Examples include solar power and wind power.
LEAP 2 fund -: LEAP 2 fund is a special pool of money managed by ADB to support projects that help the environment and fight climate change.
DEG -: DEG is a German company that invests money in projects around the world to help businesses grow and improve.
IFC -: IFC stands for International Finance Corporation. It is part of the World Bank and helps businesses in developing countries by giving them money and advice.
net-zero emissions -: Net-zero emissions means that the amount of harmful gases a company or country puts into the air is balanced by the amount they take out, making the total impact on the environment zero.
renewable energy solutions -: Renewable energy solutions are ways to use energy that comes from sources that won’t run out, like the sun or wind, instead of using up resources like coal or oil.
