CCI Approves $275M Investment in Fourth Partner Energy by IFC, ADB, and DEG

Major Boost for India’s Renewable Energy Sector with Strategic Investment in Solar and Wind Power Solutions.

The Competition Commission of India (CCI) has approved the acquisition of a significant shareholding in Fourth Partner Energy Private Limited (Target) by International Finance Corporation (IFC), Asian Development Bank (ADB), and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG). This investment, valued at approximately $275 million (₹2,296.25 crore), will strengthen Fourth Partner Energy’s position in the renewable energy market.

The transaction involves IFC, ADB, and DEG acquiring a percentage of the Target’s share capital through a combination of primary subscription and secondary purchase. This strategic investment will enhance Fourth Partner Energy’s ability to scale its integrated renewable energy solutions across India and other markets.

Profiles of the Investors

• International Finance Corporation (IFC): A member of the World Bank Group, IFC was established in 1956 to promote sustainable economic growth in developing countries by fostering private sector development. IFC provides financial solutions, mobilizes capital from international markets, and offers advisory services to businesses and governments.

• Asian Development Bank (ADB): Founded in 1966, ADB is a multilateral financial institution with 69 member countries. Its primary goal is to support development initiatives in its developing member countries (DMCs) through loans, technical assistance, grants, and equity investments.

• DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH: DEG specializes in financing private sector enterprises in developing and emerging-market countries. It offers financing, advisory services, and support to promote sustainable, forward-looking investments with a focus on climate impact and development.

About Fourth Partner Energy

Fourth Partner Energy, along with its affiliates, provides comprehensive renewable energy solutions, including:

• Installation, ownership, and operation of solar and wind power plants supplying electricity to commercial and industrial consumers.
• Engineering, Procurement & Construction (EPC) and Operations & Maintenance (O&M) services, primarily for captive use.
• Limited third-party EPC and O&M services tailored to the needs of commercial and industrial customers.

The company’s integrated approach and focus on renewable energy solutions have positioned it as a leading player in the sector, catering to the growing demand for sustainable energy among businesses.

Impact of the Investment

This infusion of $275 million will:

1. Enable Fourth Partner Energy to expand its renewable energy footprint across India and potentially into international markets.
2. Accelerate the development of solar and wind power projects, furthering India’s commitment to sustainable energy.
3. Enhance operational capabilities, particularly in EPC and O&M services, to cater to increasing demand from commercial and industrial consumers.
4. Contribute to India’s renewable energy goals and reduce dependency on fossil fuels.

Strategic Significance

The investment aligns with India’s broader renewable energy vision and showcases the confidence of international financial institutions in India’s sustainable energy sector. With the backing of IFC, ADB, and DEG, Fourth Partner Energy is poised to play a pivotal role in advancing clean energy adoption and fostering economic growth through sustainable practices.

This landmark approval reflects CCI’s commitment to facilitating investments that contribute to national development while ensuring fair competition in the market.