Fourth Partner Energy uses this third round of funding from ResponsAbility to expand their assets and bring renewables to places in need. This is exactly what ResonsAbility’s Clean Power Fund was designed to bring about.
Fourth Partner Energy announced a $15M line of credit from ResponsAbility, a Sweedish investment firm, on July 22, 2020. This is the third line of credit issued by ResponsAbility to Fourth Partner over the last four years and the second line of credit secured this year! Fourth Partner also announced a ₹5M line of credit from Grameen Impact India (GIII) on March 17, 2020.
With these lines of credit, Fourth Partner Energy plans to construct new assets for distributed solar and open access portfolios. The current goal is to add an additional 350 MW of capacity to their current standings of 400 MW. This means they are looking to almost double their solar capacity within the next few years. By their tenth year of operations, they will have 950 MW of active solar capacity across various locations.
Currently, they are present in 180 locations and counting, as they are also planning solar parks in Maharashtra, Tamil Nadu, and Uttar Pradesh. Fourth Partner is also dedicating these funds to the development of solar in areas without access to clean energy such as Sub Saharan Africa, South Asia, and Southeast Asia. These markets are becoming more and more active in solar project development – the opportunity to secure the market leader status available.
“Market sentiment for solar solutions is robust and at Fourth Partner Energy, we believe our value proposition of cost-savings on electricity and low-carbon emissions has been amplified during this global pandemic.â€
Pradhyum Reddy, Head of the Change Management Team
ResponsAbility has also created a private debt fund called “Access to Clean Power Fund†which is reserved specifically for companies looking to fix the issue of waste and promote renewable and clean energy globally. Specifically, they are looking for an emphasis on Sub-Saharan Africa, South and Southeast Asia in the efforts of these companies. This aid is meant to progress the ability for people in these areas to access clean energy for an affordable price through various financing options, as well as to promote commercial and industrial solar plants globally and in these areas.
Fourth Partner Energy’s leading investor to date is TPG Capital, although their most recent investments have not been from them. In December of 2019, Bank of America gave a $50 million line of credit, and in June of 2018, The Rise Fund made a private equity investment of $70 million.
Fourth Parner has been very active and successful in raising growth capital. Outside of financing organic growth, Fourth Partner could be looking for M&A opportunites to help push itself to the market leader position in the Asian solar market. The company may also be considering strategic investments in O&M companies to help manage its growing list of assets or EPCs to support the development of projects.
