1 month ago
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Innovative Energy Group Limited, IEG, is targeting big market share gains in the commercial, residential and utility scale business segments as it projects over US$100 million in total revenues over the next five years.
In announcing the target, Executive Chairman Nigel Davy told the company’s shareholders that regional revenue is expected to contribute a growing share, reaching 10 per cent of top-line income in the midterm and expanding even more over the long term. The IEG is particularly interested in what the Trinidad & Tobago market can deliver.
“A key point to note in the regional growth opportunities is that Trinidad, a market with relatively high disposable income, will soon be lifting the long-standing subsidy they now have on electricity rates. This will result in significant growth potential in PV, or photovoltaic, deployment in that market,” Davy told shareholders.
Davy says the company will be targeting three revenue streams for growth; noting that the renewable energy market is divided into three distinct segments – namely, utility scale; CNI, or commercial and industrial; and residential – with EVs, or electric vehicles, as a related market segment.
In the utility scale segment, the Generation Procurement Entity’s, GPE’s, recent award of the 100 megawatts of renewable energy capacity projects signifies the market’s growth potential, Davy noted. IEG was not successful in landing any of the contracts under the 100MW project, but was looking to bid in the upcoming 168MW capacity project tender by the GPE.
“The current government’s integrated resource plan, dubbed IRP2, (means that) over the next five years we expect to see requests for proposals for up to 540 megawatts of new photovoltaic solar capacity, 200 megawatts of wind capacity, plus 264 megawatts of two-hour battery energy-storage capacity in Jamaica,” Davy said.
“The PV solar and storage projects are projected to have a capital cost of approximately US$800 million, and that’s over for the next five years,” he said.
The IEG chairman added that the increasing adoption of on-site solar solutions present a significant market opportunity, estimated at 75 megawatts over five years, valued at around US$75 million; while for residential projects, the continued growth in rooftop solar installations offers further expansion opportunities, estimated at 80 megawatts over five years, valued at US$100 million. He said IEG stands ready to provide the supporting infrastructure for EVs when, as expected, the downward pressure on the price of EVs accelerates local electric vehicle sales.
IEG, formerly Ciboney Group Limited, is building out a new line of business as provider of clean, sustainable and renewable energy.
Through subsidiary Innovative Energy Company/DBA SPEI, IEG has a joint venture with Wigton Energy under which they tackle big photovoltaic or solar installation projects.
“While we continue to execute several major projects via this joint venture and are looking at new projects together, we are concurrently exploring ways to strengthen and optimise this relationship to the benefit of our respective shareholders,” Davy reported.
To finance its future expansion plans, IEG will be raising US$5 million via a combination of private equity funding and an additional public offering, APO, according to Davy. In addition, capital for specific projects in the company’s pipeline “will be secured through other appropriate long-term instruments such as green bonds,” the executive chairman said.
English (US) ·