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Innovative Energy Group Limited, IEG, has posted a modest profit for the first quarter ended August 2025, reversing its prior year’s loss as the reshaped business continues to rebuild revenue from what was formerly a shell operation.
IEG, which deals in renewable energy, is the transformed business that emerged out of the of Ciboney Group, which operated as a resort company when it was active.
In the June-August period, IEG made a profit of $4.68 million, compared to a loss of $1.61 million in the corresponding period of 2024. Revenue amounted to nearly $52 million, driven by increased sales of solar energy systems and engineering services.
The company said its “revenue diversification strategy being employed from electric golf cart sales and an uptick in residential and commercial solar sales” buttressed the top line, which recorded zero revenue in the comparative 2024 period.
The company also inked a distribution agreement with Huawei Technologies in January, a two-year renewable arrangement that gives IEG exclusive rights to distribute Huawei’s Tier 1 digital power products – including inverters, battery energy storage systems, and SCADA, or supervisory control and data acquisition monitoring equipment – across Jamaica and the English-speaking Caribbean. One other company, FosRich, also distributes other Huawei equipment mainly in Jamaica, but also within Latin American markets to some extent.
Through the Hauwei partnership, “We’re now able to offer locally available products, technical support, and efficient warranty services, which significantly enhances our value proposition,” Davy said.
The Huawei deal is expected to be a major revenue driver. Over the past two years, IEG’s subsidiary, IEC, procured more than US$6 million worth of Huawei’s products. With the new agreement, Huawei aims to capture at least 50 per cent of Jamaica’s digital power market, at a time when Jamaica is also building out renewable energy capacity to 50 per cent of the total energy mix by 2030.
Innovate Energy’s growth plans extend beyond Jamaica. The company says it is targeting US$100 million in top-line revenue over the next five years, with regional markets like Trinidad & Tobago expected to contribute significantly to the target. Trinidad’s planned removal of electricity subsidies is expected to spur demand for solar or photovoltaic systems, which IEG is hoping to leverage, according to previous reporting.
The company is also eyeing utility-scale projects. IEG failed to secure contracts for the recent 100MW renewable energy tender by the Generation Procurement Entity, GPE, but intends to try again when the GPE again goes hunting for investors for the upcoming 168MW capacity project.
Jamaica’s Integrated Resource Plan, IRP2, outlines a pipeline of 540MW in solar, 200MW in wind, and 264MW in battery storage projects over the next five years, representing a combined capital investment of approximately US$800 million.
IEG has also partnered with Wigton Energy in delivering several solar projects, notably the 10MW solarisation project at the Sangster International Airport.
In the residential and commercial segments, IEG sees strong growth potential. The company estimates that rooftop solar installations could reach 80MW over five years, valued at US$100 million, while on-site solar solutions for businesses could add another 75MW, worth US$75 million. IEG is also looking for opportunities within the EV market, in anticipation of increased demand as EV prices decline.
Since its rebranding in April 2024, Innovative Energy Group has expanded its portfolio to include engineering, construction, real estate, and smart farming technologies. Consequently, for the financial year ending May 2025, the seven months over which the new group structure went into effect delivered revenue of $321 million and profit of $82 million.
Despite the positive momentum, the company notes that challenges remain. The renewable energy market is competitive, and IEG must navigate regulatory hurdles, financing constraints, and supply chain risks. Moreover, its ability to scale operations and execute large projects will be critical to sustaining profitability, Innovative Energy said in its latest financial report.
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