Distributed solar company, Fourth Partner Energy, has announced a joint venture (JV) – Empat Mitra Indika Tenaga Surya – with Indonesia-based energy company Indika Energy to speed up renewable energy transition in Indonesia.
Indika will hold a 51% stake in the JV, and Fourth Partner will hold the rest. The JV will offer integrated solar, storage, and electric vehicle charging-related solutions to Indonesia’s businesses.
“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 decarbonization,” said Vivek Subramanian, Co-Founder, and Executive Director, Fourth Partner Energy.
The JV will combine Fourth Partner Energy’s experience in building its over 550 MW solar energy portfolio with Indika Energy’s engineering capabilities and track record in providing energy solutions to Indonesia’s consumers, Indika 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% by 2025,” said M. Arsjad Rasjid, President Director of Indika Energy.
According to data from Indonesia’s Directorate General of New and Renewable Energy and Energy Conservation, renewable energy sources are estimated to have accounted for 11.51%, or around 10.5 GW of the country’s total energy consumption in 2020.
Fourth Partner Energy emerged as one of the top rooftop solar installers in India in the first half of the calendar year 2020 alongside Tata Power Solar and CleanMax, according to Mercom’s India Solar Market Leaderboard for 1H of 2020. Together, these three installers accounted for nearly 47% of the total rooftop installations in 1H of 2020.
In September 2020, Mercom reported that Fourth Partner Energy raised ₹1.26 billion (~$17.4 million) in funding with the help of Symbiotics, an investment firm specialized in emerging, sustainable, and inclusive finance, issued its first bond, the proceeds of which are exclusively used to finance renewable energy projects.
Nithin Thomas is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.