Fourth Partner Energy, India's leading solar solution firm, on Friday announced a partnership with Indonesia's Indika Energy to provide solar, battery storage and EV solutions to the South East Asian nation.
"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," the company said in a statement.
Indika Energy will hold 51 per cent and Fourth Partner Energy 49 per cent stake in EMITS.
Vivek Subramanian, co-founder and executive director, Fourth Partner Energy, said, "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," he said.
Indonesia, like India, has a clear imperative towards aggressive decarbonisation.
Indika Energy, he said, is the ideal partner as it has two decades of on-ground leadership as an integrated energy player with robust clientele and strong financials.
"Together with Indika Energy's local regulatory expertise and our execution prowess, we are confident that EMITS will be Indonesia's leading renewable energy solutions platform," he added.
President Director of Indika Energy, M Arsjad Rasjid EMITS is expected to contribute to the firm's efforts to increase revenues from the non-coal segment by 50 per cent by 2025.
Alluding to the market opportunity in Indonesia, he said, "The Ministry of Energy and Mineral Resources (MEMR) has projected the total investment to achieve the 23 per cent renewable energy target by 2025 as upwards of USD 36 billion. Realising this potential requires intensified collaboration with various stakeholders – including the private sector. EMITS expects to bring in at least USD 500 million into Indonesia in the next 5 years".
This partnership was facilitated by TPG's impact investment arm, The Rise Fund – which is the majority shareholder in Fourth Partner Energy.
With over USD 5 billion in assets under management, The Rise Fund is the largest private markets social impact fund in the world.
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 said.
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.