Rubis investment to strengthen Soleco’s growth ambitions… renewable energy company sees new opportunities in battery storage

The the recent closing of Rubis Caribbean Holdings’ strategic investment in Soleco Energy Limited is expected to help the company drive the growth of solar energy investments and exploit new energy storage opportunities in the Caribbean region.

Under the partnership, Rubis, a French company operating in Africa, the Caribbean and Europe, is expected to offer its global relationships and financial strength, while Soleco will contribute its expertise in solar energy development to provide more renewable solutions to commercial and industrial customers across region.

Rubis, which has specialized in the storage, distribution and sale of crude oil, liquefied natural gas and other chemical products for over three decades, is now diversifying its business model to offer lower carbon solutions, in line with global sustainability ambitions.

Joining the Pan Jamaica Group, the subsidiary of the French company is now one of the largest investors in Soleco.

Soleco says the level of investment made by Rubis, although not disclosed, will help its company expand into more markets in the Caribbean.

“This partnership will bring significantly more capital to the company, help us build our team and expand our technical capabilities as we offer more solutions to customers and expand our pipeline and base,” said Soleco CEO and founder Angella Rainford during an interview with Observer from Jamaica this week.

“Rubis also works with customers, so we’re looking at the best way to serve customers who may already have a fossil fuel relationship with them but are interested in renewables. Geographically, many countries in the Caribbean also appeal to us and we are currently considering projects with them in markets such as the Bahamas, Jamaica, Cayman Islands, Guyana and Barbados as we can leverage the growth that will come from the partnership,” she further said Caribbean Business Report.

Soleco, a UK-based renewable energy development company with offices in London and Kingston, was founded in 2019 to deliver energy distribution projects for large commercial and industrial clients throughout the Caribbean. Investments to date include a 51 MW solar power plant at Paradise Park in Westmoreland, Jamaica, which cost $60 million.

By securing $900,000 in grants from USAID earlier this year, Soleco was able to enhance its strategic business plan, mobilizing capital to provide more solar and energy storage solutions to companies.

Just last month, the renewable energy company, in one of its largest local projects, partnered with poultry company Caribbean Broilers Group to develop photovoltaic (PV) plants on its farms.

Bullish in his pursuit of more projects, Rainford touted Soleco’s active deal pipeline.

“We cannot disclose these agreements yet, but I can say that we have already signed exclusive contracts with several large industrial clients across a number of sectors, including hospitality, mining and some other heavy industries, and we are now looking at converting these pipeline projects to full implementation,” she said.

The aspiring entrepreneur said her company, looking for new growth opportunities, recently started looking at battery storage options. Due to what she described as a “significant decline in battery prices” over the past few years, she believes the prospects for additional business in this area are very high. Bloomberg A recent report on energy storage system prices in China shows that they will more than halve in 2024, reaching below $100 per kilowatt hour.

“We have started to see much more potential in this area, so we are currently exploring opportunities to see how we can best serve our customers’ needs even better. Our goal is not to disconnect customers from the grid, but to help them reduce their energy costs and carbon footprint,” Rainford said.

“As we continue to plan to develop renewable energy sources, the prospects are very positive. Our latest partnerships will help us accelerate what we’ve been doing and we expect to deploy our expertise with some of our larger industrial clients. We are currently in a growth phase and while these projects take time, our goal is to be a leading provider of solar and energy storage solutions to commercial and industrial entities in Jamaica and the broader Caribbean,” she added.