ADB & Fourth Partner Energy Join Hands for 25 MW Solar Power Plant in Tamil Nadu

ADB & Fourth Partner Join Hands for 25 MW Solar Power Plant in Tamil Nadu

The Asian Development Bank (ADB) and Independent Power Producer Fourth Partner Energy Private Limited (Fourth Partner) have joined hands for a long-term loan of up to Rs 1.2 billion Indian rupees towards the construction and operation of a 25 MW solar power plant. This will help augment clean and low-cost energy supply to commercial and industrial customers.

The project, established in Tirunelveli district in Tamil Nadu, will generate close to 50.7 gigawatt-hours of electricity every year. It will directly sell power to commercial and industrial users. As per the open access renewable energy policy, a group of consumers can purchase electricity directly from an Independent Power Producer (IPP).

“Open access energy procurement can play an important role in businesses achieving their net zero emissions targets,” said ADB’s Private Sector Operations Department Director General Suzanne Gaboury while adding, “Solutions like this are being spearheaded by ADB to promote renewable energy across the region. This is ADB’s first direct financing to a renewable energy plant of this nature and is expected to crowd in international commercial financing to further decarbonize the commercial and industrial sector”.

The plant will enable about 41,700 tons of carbon dioxide emissions to be curbed annually.

“We are excited to add ADB to our esteemed list of green financiers as we move closer to our 3.5 GW renewable energy target by 2025. Fourth Partner is also constructing solar and wind parks across Ottapidaram, Tuticorin, and Nandikundu in Tamil Nadu,” said Fourth Partner Energy Co-Founder and Executive Director Vivek Subramanian. “We see this project as the beginning of our long-standing partnership with ADB to deliver cleaner, affordable power to India’s commercial and industrial sector.”

About two weeks ago, Norwegian Investment Fund for developing countries – Norfund had announced a fresh investment of ₹350 Cr into renewable energy solutions platform, Fourth Partner Energy (4PEL). This is the second round of equity infusion by Norfund into 4PEL, following its $100 Mn investment in June 2021.

Recently, ADB and Tata Power Delhi Distribution Limited (TPDDL), the distribution arm of Tata Power, announced an agreement to subscribe to non-convertible debentures for Rs 1.5 billion ($18.2 million) to enhance Delhi’s power distribution through grid enhancements.