New report by British International Investment shows that going green is good for business as well as the environment
A new report published today by British International Investment, the UK’s development finance institute and impact investor, has revealed that Indian companies that make the switch to renewable energy are able to significantly boost their output while reducing emissions.
The BII study, commissioned by the UK’s Foreign, Commonwealth and Development Office, focuses on the energy use of business customers of Fourth Partner Energy (FPEL), a renewable energy provider and BII investee company.
Using FPEL’s operational data, the study modelled how much its customers’ electricity consumption is likely to have increased due to the cheaper cost of renewable power, and how their economic output and emissions have changed as a result.
The study, titled “Evaluating the impact of BII’s investment in C&I power in India”, estimates that the switch to renewable power among FPEL’s clients has generated $344 million (₹29.6 billion) in additional value annually, equivalent to around 3 per cent of these businesses’ total annual output.
At the same time, the use of FPEL power solutions, largely through FPEL’s open access solar installations, have avoided an estimated 3.23 million tonnes of CO₂ emissions each year.
Speaking while COP30 is ongoing in Brazil, Shilpa Kumar, Managing Director and Head of India at BII, said: “This landmark report shows that going green makes perfect sense for Indian businesses. As global leaders gather at COP30, BII is committed to supporting the Indian economy to boost business growth while transiting to a net zero future.”
Nithya Balakrishnan, Head of Marketing & Policy Advocacy at Fourth Partner Energy, said: “With a target of 500GW of renewable by 2030, India is poised to become a leader in accelerating decarbonization and FPEL is proud to play a pivotal role in supporting that commitment for the corporate sector.”
The study, written by global consultancies Itad and Steward Redqueen, also found that BII had played an important role in FPEL’s growth. Since 2021, BII’s investments have enabled FPEL to expand rapidly, moving from rooftop solar projects to large-scale open access renewables. By providing mezzanine finance at a critical juncture, BII enabled FPEL to scale up its open access model and attract further institutional investment, including from the International Finance Corporation, Asian Development Bank, and DEG.
The report also charts how the rapid growth of India’s commercial and industrial (C&I) renewables sector has been driven by enabling regulatory reforms by the Indian government. Since 2022, a series of initiatives have improved project viability and investor confidence,
including by enabling the sale of power across state borders and reducing interstate transmission charges.
The report published today is part of a programme of ongoing evaluations of BII’s impact which are critical to help FCDO and BII better understand how, and in what contexts, the DFI’s investments deliver tangible, sustainable development impact on people, businesses, sectors and overall economies.
