Fourth Partner Energy Sets up Indonesian JV
Indonesia, March, 05 2021 -
Fourth Partner Energy (4PEL) has partnered with Indonesia’s Indika Energy to form a joint venture, Empat Mitra Indika Tenaga Surya (EMITS), for setting up integrated solar, storage and electric vehicle (EV) charging projects in Indonesia, the firms said in a joint statement on Friday.
“EMITS expects to bring in at least $500 Mn into Indonesia in the next 5 years," the statement said.
While Indika Energy will hold 51% stake in EMITS, the balance 49% stake will be held by Hyderabad-based Fourth Partner Energy, that has investors including TPG Capital, which has invested through its impact investment arm The RISE Fund.
Also, a European impact investment fund consortium led by Symbiotics, and responsAbility Investments are investors in 4PEL.
Fourth Partner Energy focuses on commercial and industrial (C&I) segment and has an operational portfolio of 400MW. It is building solar parks in Uttar Pradesh, Maharashtra and Tamil Nadu. It also has an equal JV with EV fleet operator, Lithium Urban Technologies, to set up solar powered EV charging infrastructure in India.
“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," said Vivek Subramanian, co-founder and executive director, Fourth Partner Energy in the statement.
“For Indika Energy, EMITS is expected to contribute to our efforts to increase revenues from the non-coal segment by 50% by 2025," added president director of Indika Energy, M. Arsjad Rasjid in the statement.
This comes in the backdrop of Netherlands’ SHV Energy and India’s quasi-sovereign wealth fund National Investment and Infrastructure Fund (NIIF) separately looking to buy a stake in 4PEL for about $150 million, Mint reported earlier. 4PEL has appointed Investec to raise about $150 million through a stake sale.
“Apart from operations in Indonesia, Fourth Partner Energy is looking to expand its International presence in Sri Lanka, Bangladesh, Vietnam, Myanmar and Singapore," the statement added.