Project

Scaling Up to 55 MW Aggregated Solar PV Projects

Country
Thailand
Sector
Renewable Energy
Proposed Investment
USD15,000,000 - Equity

Technologies

Solar


Last Updated
Wed, 10/18/2017 - 17:26

Fourth Partner Energy Pvt Ltd (4PEL) is a leading Renewable Energy Services Company (RESCO) operating in the Distributed Solar space in India for the past six years. Ranked the fourth largest EPC player in the rooftop solar space in India, 4PEL primarily targets corporate and institutional clients and has installed more than 520 rooftop solar projects aggregating ~16MW across 21 states in India. The company has been profitable since inception and has grown its revenues 5x in the last 2 years. Today, 4PEL has a pan-India presence with a team of 100 people and 7 offices servicing its 60 corporate clients. It has established sound lender and supplier relationships. Having so far followed an asset light model with back-to-back asset financing arrangements, the company now plans to raise money to set up and own solar assets aggregating ~55 MW across India over the next two years. A number of these projects will also be in semi urban and rural areas and in social institutions such as schools, colleges and hospitals.
What problem are you trying to solve? Who has this problem?
Distributed Solar in India is in an explosive growth phase. The Government of India has set an ambitious plan to increase distributed solar from current level of 1GW to 40 GW by 2022 at a CAGR of 97% p.a. With amortized cost of solar power cheaper than the cost of industrial and commercial power in more than 17 states in India, this growth is being driven by commercial viability and not incentives/subsidies.
Value Proposition
With 500 installations across India, Fourth Partner Energy (4PEL) is a leader in rooftop solar space in India. 4PEL is the fourth largest EPC player in rooftop solar in India. Its core value proposition is to reduce its corporate clients' cost of power by providing them rooftop solar power at lower cost using a mix of engineering and financing capabilities. With its relentless focus on cost control, 4PEL today offer one of the lowest costs in this industry (<75 cents/watt). 4PEL offers two options to its clients: A. Capex Option - The client pays for the capex for the solar plant. The financing is through a mix of debt and equity. B. Opex Option - 4PEL pays for the capex with a financing arrangement with investors (financing entity). 4PEL enters into a Power Purchase Agreement (PPA) with the client and supplies power to them. Even under the Opex option, 4PEL has followed an asset lightmodel - signing PPAs with corporate clients, executing the projects and getting equity investors to invest in them. 4PEL has set up internal systems and processes to manage generation and credit risks associated with such contractual arrangements.
  • Annual reduction of 45,000 tons Carbon Dioxide emissions
  • Annual reduction of 155 tonnes Sulfur Dioxide and 70 tonnes of Nitrogen Oxide
  • Several of the installations will be in rural and backward areas and will contribute to providing electricity access there
Amber Maheswari, Director (Infuse Ventures)
Brajesh Kumar Sinha, Head - Business Development
Gautam Handa, Head - Corporate Development
MS Ramachandran, Independent Director
Narayanan R, Director (The Chennai Angels)
Saif Dhorajiwala, Co-founder
Srinavasa Reddy, Head - Operations, R&D, Product Development
Vikas Saluguti, Co-founder
Vivek Subramanian, Co-founder
Advisors
Investors
Asian Development Bank
Infuse Ventures
The Chennai Angels
Oiko Credit - Maanaveeya Development and Finance Private
RBL Bank
ResponsAbility AG


Maturity Level
  • Prototyping and Validation
  • Commercial Operations
  • Growth and Expansion