Fourth Partner Energy Expands Footprint Ties up With Indonesia’s Indika Energy

Fourth Partner Energy has partnered with Indika Energy to form JV -EMITS with the aim of accelerating Indonesia’s renewable energy transition.

Fourth Partner Energy (FPE), one of India’s leading solar solutions firms has announced a partnership with Indonesia’s energy major, Indika Energy. The joint venture (JV) company Empat Mitra Indika Tenaga Surya (EMITS) is aimed at accelerating Indonesia’s renewable energy transition. 

Like Fourth Partner Energy’s India portfolio, EMITS will offer integrated solar, storage and EV charging solutions to Indonesia’s businesses. Indika Energy will hold 51 percent and Fourth Partner Energy 49 percent stake in EMITS.

Vivek Subramanian, Co-Founder and Executive Director, Fourth Partner Energy announced this development saying, “this partnership with Indika Energy is an important part of our strategic international expansion into key markets across South East Asia. The commercial potential for renewable energy in Indonesia is immense – the government aims to double its current share of clean energy and achieve nearly a quarter of its energy needs from renewables by 2025. Indonesia, like India has a clear imperative towards aggressive decarbonisation. EMITS is gearing up to play a vital role in enabling this transition through a simple value proposition to the consumer – cleaner electricity at lower rates than grid tariffs, to help meet their sustainability goals.”

“Indika Energy is the ideal partner for us in Indonesia as they have 2 decades of on-ground leadership as an integrated energy player with robust clientele and strong financials – together with Indika Energy’s local regulatory expertise and our execution prowess, we are confident that EMITS will be Indonesia’s leading renewable energy solutions platform,” he added.

This partnership was facilitated by TPG’s impact investment arm, The Rise Fund – which is the majority shareholder in Fourth Partner Energy. With over USD 5 billion in assets under management, The Rise Fund is the largest private markets social impact fund in the world.

President Director of Indika Energy, M. Arsjad Rasjid said, “this joint venture is a manifestation of Indika Energy’s commitment to continue diversifying our business portfolios, achieve our sustainability goals, improve ESG performance as well as contribute to Indonesia’s national energy interests. For Indika Energy, EMITS is expected to contribute to our efforts to increase revenues from the non-coal segment by 50 percent by 2025. We are excited to work with Fourth Partner Energy, whose end-to-end renewable energy expertise will ensure that EMITS can replicate in Indonesia, the market dominance they have achieved in India.”

Alluding to the market opportunity in Indonesia, he added, “the Ministry of Energy and Mineral Resources (MEMR) has projected the total investment to achieve the 23 percent renewable energy target by 2025 as upwards of US 36 billion. Realising this potential requires intensified collaboration with various stakeholders – including the private sector. EMITS expects to bring in at least USD 500 million into Indonesia in the next 5 years.”

FPE has further stated that apart from operations in Indonesia, it is looking to expand its international presence in Sri Lanka, Bangladesh, Vietnam, Myanmar and Singapore. 

It currently has an installed base of 550 MW solar capacity across the distributed and open access portfolios – with solar parks under construction in Uttar Pradesh, Maharashtra, Tamil Nadu, Chhattisgarh and Gujarat.

Fourth Partner Energy has also set up a 50:50 JV with leading commercial EV fleet operator, Lithium Urban Technologies in India to set up solar-powered EV charging infrastructure across the country. Charging Hubs across Pune and Gurugram have already been commissioned while hubs across Mumbai, Hyderabad, Kolkata, Chennai and Jaipur are in the pipeline.