B.Grimm Power Plc (BGRIM) announced an investment of roughly US$3.39 million to acquire a 40% shareholding in ThreeEightSix Holdings Ltd, an independent power producer, aiming to penetrate the clean energy market in the Middle East.
Mr Link says BGRIM's announcement that it will take a 40% stake in ThreeEightSix is set to mark the start of significant investments by the firm in the Middle East.
This investment focuses on commercial and industrial solar assets located within a region that includes the member states of the Gulf Cooperation Council, with a goal of meeting the growing demand for renewable energy in the region, said Harald Link, president of BGRIM.
The company sees potential in the Middle East's renewable energy industry, which aligns with various countries' policies, he said.
For example, the United Arab Emirates (UAE) plans to increase its renewable energy capacity from 3.7 gigawatts in 2023 to 19.8GW by 2030.
Similarly, Saudi Arabia is committed to expanding its renewable capacity from less than 1GW in 2022 to 58GW by 2030. Although it's a smaller market, Bahrain has set a renewable energy policy to increase its capacity to 710 megawatts by 2035.
ThreeEightSix Holdings has solar rooftop assets and solar energy sales agreements for a total capacity of 33.7MW in the UAE, Saudi Arabia and Bahrain.
The projects include five operating projects with a combined capacity of 4.1MW and 10 projects in the development and construction stages, aiming for an additional capacity of 29.6MW.
All projects are targeted for commercial operation during 2024-2025, meeting the increasing demand for renewable energy and marking BGRIM's new investment in the clean energy market of the Middle East through this joint venture.
The company expects this to be the start of significant investments in the Middle East, said Mr Link.