Indian Firms Gain Bigger Output, Lower Emissions with Renewables, Says BII Study

Indian businesses adopting renewable energy are seeing sharper growth and lower emissions, according to a new report released today by British International Investment (BII), the UK’s development finance institution and impact investor.

The study, commissioned by the UK’s Foreign, Commonwealth & Development Office, examined the energy use and performance of corporate customers of Fourth Partner Energy (FPEL), a renewable energy provider backed by BII. Using operational data from FPEL, researchers modelled how the availability of lower-cost renewable power influenced electricity consumption, economic output and emissions.

Titled 'Evaluating the impact of BII's investment in C&I power in India',  the report estimates that FPEL’s clients generated an additional USD 344 million (INR 29.6 billion) in value annually after switching to renewable power, equivalent to roughly 3 percent of their total yearly output. The transition also helped avoid 3.23 million tonnes of CO₂ emissions each year, largely driven by FPEL’s open-access solar installations.

Speaking at the time global leaders are convening at COP30 in Brazil, Shilpa Kumar, Managing Director and Head of India at BII, said the findings reinforce the economic logic of sustainability: “This landmark report shows that going green makes perfect sense for Indian businesses. BII is committed to supporting the Indian economy to boost business growth while transiting to a net-zero future.”

Nithya Balakrishnan, Head of Marketing and Policy Advocacy at Fourth Partner Energy, added that India’s ambition of reaching 500 GW of renewable capacity by 2030 positions the country as a global frontrunner in decarbonisation, with FPEL continuing to support corporates on that journey.

The study—conducted by global consultancies Itad and Steward Redqueen—also highlights the critical role of BII’s financing in FPEL’s scale-up. Since 2021, BII’s investments have enabled the company to expand rapidly from rooftop solar into large-scale open-access renewable projects. Mezzanine funding from BII helped FPEL strengthen its model and attract additional institutional investors including the International Finance Corporation, Asian Development Bank and DEG.

The report further notes that India’s fast-growing commercial and industrial (C&I) renewables sector has benefited from regulatory reforms since 2022, which improved project viability and investor confidence. Key changes include allowing power sale across state borders and lowering interstate transmission charges.

The publication is part of an ongoing evaluation programme assessing BII’s impact to help the FCDO and BII better understand how the institution’s investments deliver measurable, sustainable development benefits across people, businesses and economies.