On Thursday, Inox Clean Energy declared a joint venture with RJ Corp aimed at entering the renewable energy markets in Africa, signifying a significant milestone in its global expansion efforts. According to a company announcement, this joint venture sees Inox Clean Energy, alongside RJ Corp, acquiring Skypower Services MENA Ltd, with plans to launch approximately 570 MW of renewable energy capacity during the first phase.
Inox Clean Energy, a subsidiary of the INOXGFL Group and a prominent integrated renewable energy platform in India, in collaboration with RJ Corp Ltd, a multinational conglomerate involved in sectors such as food and beverage, quick service restaurants, dairy, retail, and healthcare, announced on Thursday their joint venture entry into the renewable energy markets of Africa, which represents a significant milestone in their global expansion efforts, according to the statement.
The initiatives are included in a multi-gigawatt pipeline associated with the acquisition and are backed by sovereign-supported power purchase agreements (PPAs), which greatly reduce payment and counterparty risks, leading to project IRRs exceeding 20 percent. The infrastructure for land and power evacuation is already established, which guarantees robust project fundamentals and expedited execution.
Inox Clean is focused on reaching a target of 2.5 GW of renewable energy power generation capacity installed in Africa by FY29, with plans to secure debt funding for the projects from multilateral agencies, which will further bolster the financial strength of the platform.
The joint venture is acquiring the Africa portfolio by taking over Skypower Services MENA Ltd, which specializes in the development, financing, construction, and operation of utility-scale solar projects. This company has a significant development pipeline in rapidly growing African nations such as Zambia, Zimbabwe, and the Democratic Republic of Congo—regions experiencing increasing power demand and a robust initiative for clean, dependable energy infrastructure, as stated.
Devansh Jain, who serves as the Executive Director of INOXGFL Group, expressed, "Inox Clean’s venture into Africa via the acquisition of Skypower Services MENA, in partnership with RJ Corp—an already prominent and respected name in the area—signifies a crucial milestone in our global growth strategy."
Ravi Jaipuria, the Chairman of RJ Corp, commented, "Our alliance with Inox Clean for this IPP project allows us to harness their top-tier renewable energy expertise to decarbonize our operations while providing reliable and cost-effective power solutions." Inox Clean Energy, the integrated renewable energy platform of the INOXGFL Group, operates in the renewable IPP (Independent Power Producer) sector through its subsidiary Inox Neo and in the solar manufacturing sector through its subsidiary Inox Solar Limited.
Inox Clean is swiftly expanding across various sectors through both greenfield and inorganic strategies, aiming for 10 GW of installed renewable energy independent power producer capacity and 11 GW of integrated solar manufacturing capacity by FY28, with assets distributed throughout India and several important global regions.