UK’s development finance institution (DFI) British International Investment on Thursday announced a total commitment of $89 million to scale clean energy capacity in India. The investment comprises a $47 million follow-on commitment to Fourth Partner Energy, and a $42 million project finance debt investment to Thar Surya 1 Private Limited – an Indian subsidiary of Enel S.p.A, Italy (Enel). Both investments will target the expansion of renewable power in India and help accelerate the country’s energy transition over the long term.
BII’s $47 million follow-on commitment to Fourth Partner Energy, a leading renewable energy company for commercial and industrial businesses, will fund around 294 MW of greenfield renewable generation capacity across India, Sri Lanka, Bangladesh, Indonesia and Vietnam. The added capacity will increase the supply of power to the company’s commercial and industrial customers and help avoid nearly 400,000 tonnes of carbon dioxide emissions annually, the statement said.
The latest investment brings BII’s total commitment to Fourth Partner Energy to $80 million – with an investment goal of promoting clean energy alternatives to coal, across South and Southeast Asia. BII’s $42 million debt investment to Thar Surya 1 Private Limited, forms part of an estimated $200 million total project that aims to fund the development, construction, and maintenance of a 300 MW solar project in India.
Under its new five-year strategy, BII has set a target for 30 per cent of its new investments to be in climate finance, with a strong emphasis on investing in clean and renewable infrastructure. The DFI’s new strategy is driven by its mission to help address some of the urgent challenges posed by climate change, including decarbonising the energy mix, building green energy capacity and helping catalyse the growth of the renewable sector in the countries in which it invests.
Srini Nagarajan, managing director and head of Asia, at BII, said: “Investing to bolster India’s renewable energy is a critical strategic step toward ensuring the country’s growth ambitions align with its goals to achieve a net-zero carbon future. BII’s investments in Fourth Partner Energy and the Thar Solar PV project are a continuation of more than 30 years experience of in investing in India, and its objective is to help tackle the climate emergency while meeting India’s increased demand and consumption of energy.” The project is designed to displace thermal generation in the grid, abate 697,000 tonnes of greenhouse gas emissions annually, and meet the equivalent demand of 151,000 consumers in the country. The addition of clean energy to the grid will help meet India’s heightened energy demand, boost access to affordable, reliable and sustainable energy, while also increasing productivity for businesses and consumers across the country.
