FOURTH PARTNER ENERGY TIES UP WITH INDONESIA’s INDIKA ENERGY TO EXPAND ITS INTERNATIONAL FOOTPRINT
The Joint Venture Company EMITS will provide Onsite & Offsite solar, Battery Storage and EV Charging Infrastructure solutions to Indonesia’s corporate sector
Hyderabad/Jakarta: Fourth Partner Energy, India’s leading solar solutions firm today announced a partnership with Indonesia’s energy major, Indika Energy. The joint venture company Empat Mitra Indika Tenaga Surya (EMITS) is aimed at accelerating Indonesia’s renewable energy transition. Like Fourth Partner Energy’s India portfolio, EMITS will offer integrated solar, storage and EV charging solutions to Indonesia’s businesses. Indika Energy will hold 51% and Fourth Partner Energy 49% stake in EMITS.
Vivek Subramanian, Co-Founder and Executive Director, Fourth Partner Energy announced this development saying, “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. Indonesia, like India has a clear imperative towards aggressive decarbonization. EMITS is gearing up to play a vital role in enabling this transition through a simple value proposition to the consumer – cleaner electricity at lower rates than grid tariffs, to help meet their sustainability goals.”
“Indika Energy is the ideal partner for us in Indonesia as they have 2 decades of on-ground leadership as an integrated energy player with robust clientele and strong financials – together with Indika’s local regulatory expertise and our execution prowess, we are confident that EMITS will be Indonesia’s leading renewable energy solutions platform,” he added.
Azis Armand, Vice President Director and CEO of Indika Energy commented on the partnership saying, “this JV is a manifestation of Indika’s commitment to continue diversification of 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. We are excited to work with Fourth Partner Energy, whose end-to-end renewable energy expertise will ensure that EMITS can replicate in Indonesia, the market dominance they have achieved in India.”
Alluding to the market opportunity in Indonesia, he added, “the Ministry of Energy and Mineral Resources (MEMR) has projected the total investment to achieve the 23% renewable energy target by 2025 as upwards of $36 Bn. Realizing this potential requires intensified collaboration with various stakeholders – including the private sector. EMITS expects to bring in at least $500 Mn into Indonesia in the next 5 years.”
This partnership was facilitated by TPG Capital’s Impact Investment Arm, The RISE Fund – which is the majority shareholder in Fourth Partner Energy. With a portfolio of over $5 Bn, RISE is the largest social impact fund in the world.
Sir Richard Branson, member, Founders Board at RISE, commented on the significance of this joint venture, “RISE is constantly looking to invest in or bring together companies that drive measurable social and environmental impact, alongside business performance and strong returns. EMITS brings together two stellar market leaders across respective geographies to combat climate change. We look forward to working with this team and lending our global expertise to help green Indonesia’s energy footprint.”
Apart from operations in Indonesia, Fourth Partner Energy is looking to expand its International presence in Sri Lanka, Bangladesh, Vietnam, Myanmar and Singapore. The company currently has an installed base of 550 MW solar capacity across the distributed and open access portfolios – with solar parks under construction in Uttar Pradesh, Maharashtra, Tamil Nadu, Chhattisgarh and Gujarat. Fourth Partner Energy has also set up a 50:50 JV with leading commercial EV fleet operator, Lithium Urban Technologies in India to set up solar powered EV charging infrastructure across the country. Charging Hubs across Pune and Gurugram have already been commissioned while hubs across Mumbai, Hyderabad, Kolkata, Chennai and Jaipur are in the pipeline.