Fourth Partner Energy has entered into an agreement with the Asian Development Bank (ADB) to secure a long-term loan of up to ₹1.2 billion (~$14.7 million) for constructing and operating a 25 MW solar open access project in the Tirunelveli district of Tamil Nadu.

The project will supply clean and cost-effective solar energy to Fourth Partner Energy’s various commercial and industrial (C&I) clients and is projected to yield approximately 50.7 GWh of electricity annually.

The project is expected to help prevent the release of around 41,700 tons of carbon dioxide emissions per year, which would have otherwise been produced by conventional fossil fuel power projects.

Speaking on the funding, ADB’s Private Sector Operations Department Director General Suzanne Gaboury said, “Open access energy procurement can play an important role in businesses achieving their net zero emissions targets. ADB is spearheading solutions like this to promote renewable energy across the region. This is ADB’s first direct financing to a renewable energy project of this nature and is expected to crowd in international commercial financing to further decarbonize the C&I sector.”

Since 2007, ADB has been actively promoting the growth of renewable energy in India. This engagement began with funding the initial group of wind projects under the independent power producer model. It has continued its support by providing financing to solar independent power producers through its involvement in projects aligned with the National Solar Mission and diverse state-level policies.

In May this year, ADB announced a new financing program for the Asia Pacific, which would significantly help the region accelerate actions required to combat climate change.

Fourth Partner Energy Co-Founder and Executive Director Vivek Subramanian said, “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. We see this project as beginning our long-standing partnership with ADB to deliver cleaner, affordable power to India’s C&I sector.”

The company has managed to garner funds through different investments to help expand its project footprint in India.

Recently, Norwegian investment fund Norfund announced an investment of ₹3.5 billion (~$42.41 million) in Fourth Partner Energy to support its renewables expansion in India. Separately, the International Finance Corporation announced an investment of ₹5.6 billion (~$67.85 million) to support the installation of the company’s rooftop solar projects and 75 MW solar park in Atharga, Karnataka.