Global infrastructure investment manager I Squared Capital has made a significant move into the burgeoning renewables sector of the Gulf Cooperation Council (GCC) with the official launch of Radiant Energy Solutions, a new platform poised to accelerate the adoption of clean energy across the Middle East. This strategic initiative represents a cornerstone of the firm’s dedicated regional infrastructure strategy, which is designed to identify and execute transformative, mid-market investments that directly support the area’s ambitious economic diversification and energy transition objectives. Radiant is positioned to become a key player in providing comprehensive decarbonization solutions to a rapidly expanding commercial and industrial client base seeking both sustainability and energy independence.
A New Player in Middle East Renewables
Introducing Radiant Energy Solutions
Radiant Energy Solutions has been established with a distinct and focused mission to deliver comprehensive decarbonization solutions tailored specifically for commercial and industrial (C&I) customers throughout the Gulf region. The platform’s core strategy centers on the development and implementation of “behind-the-meter” projects, a model where power is generated on-site for the end-user rather than being fed into the primary electrical grid. This approach is instrumental in providing clients with greater control over their energy supply and costs. The suite of services offered by Radiant will include the development of sophisticated distributed solar energy systems, the integration of advanced energy storage solutions, and the deployment of other associated energy transition technologies. Ultimately, the goal is to empower C&I clients to significantly reduce their carbon footprint, achieve a higher degree of energy independence, and realize substantial long-term cost savings on their overall power consumption, aligning their operational goals with broader sustainability mandates.
The comprehensive nature of Radiant’s offerings is designed to address the multifaceted energy challenges faced by modern industrial and commercial enterprises. Rather than providing a single product, the platform aims to be a holistic energy partner, analyzing a client’s specific consumption patterns and operational needs to design a bespoke system. This could involve combining rooftop solar installations with battery storage to ensure a consistent power supply, even during periods of low solar generation or grid instability. Furthermore, the integration of other energy transition technologies might include advanced energy management software that optimizes power usage across a facility or the implementation of electric vehicle charging infrastructure powered by on-site renewables. This integrated approach ensures that clients are not merely adopting solar power but are fundamentally transforming their energy infrastructure to be more efficient, resilient, and environmentally responsible, thereby future-proofing their operations against rising energy costs and evolving regulatory landscapes.
Building a Powerful Foundation
In line with I Squared Capital’s well-established and successful platform-building methodology, the launch of Radiant is firmly anchored by a significant foundational acquisition. The firm has acquired FAS Renewables and its wholly owned subsidiary, Zahra Energy, a strategic move that immediately provides Radiant with a substantial and de-risked foothold within the key Saudi Arabian market. This approach, which involves starting with a strong, operational initial asset and scaling it through further investment and strategic expansion, mitigates the risks associated with starting from scratch. The acquisition of an existing player with a proven track record allows Radiant to bypass the lengthy development cycles and regulatory hurdles that a new entrant would typically face. This method not only accelerates Radiant’s market entry but also ensures it begins operations with a solid revenue stream and an established brand presence, creating a powerful springboard for its ambitious regional growth plans.
The portfolio inherited through this strategic purchase is both advanced and financially secured, boasting over 100 megawatts-peak (MWp) of distributed solar projects already in operation or advanced development. These projects are underpinned by long-term, contracted solar power purchase agreements (PPAs) with a roster of well-established and creditworthy customers. A notable client within this portfolio is Cenomi Centers, a premier owner, operator, and developer of shopping centers in Saudi Arabia, which demonstrates the platform’s capability to serve large-scale commercial clients. This acquisition does more than just provide an immediate revenue-generating asset base; it also brings an experienced and highly skilled local management team into the Radiant platform. This integration is crucial, as it blends deep local market expertise, regulatory knowledge, and established customer relationships with I Squared’s global operational best practices and substantial financial capabilities, creating a synergistic combination poised for success.
Strategy and Ambition
Fueling Growth with Significant Investment
I Squared Capital has underscored its profound commitment to this new venture by earmarking a substantial US$150 million to fuel Radiant’s growth and expansion across the Gulf. This significant capital injection is strategically intended to support a dual-pronged growth strategy, encompassing both the organic development of new, greenfield projects and the execution of further strategic acquisitions that can add scale, technology, or geographic reach to the platform. This financial backing provides Radiant with the necessary resources to compete effectively and aggressively pursue opportunities in a dynamic and rapidly evolving market. The scale of the investment serves as a clear signal of I Squared’s conviction in the long-term potential of the distributed renewables sector in the Middle East and its intent to build a market-leading enterprise. This capital ensures that Radiant can fund the entire project lifecycle, from initial design and engineering to construction and long-term operation.
The firm has articulated a clear and decidedly ambitious long-term vision for the platform: to develop, construct, and operate a portfolio exceeding 1 gigawatt (1GW) of behind-the-meter renewable energy and storage solutions throughout the Gulf Cooperation Council. This impressive target aims to position Radiant as one of the preeminent developers of decarbonization solutions in Saudi Arabia and the broader GCC region. Achieving this 1GW goal would represent a significant contribution to the region’s clean energy capacity and would firmly establish Radiant as a critical partner for C&I clients dedicated to sustainability. This new platform also adds considerable strength to I Squared’s impressive global renewable energy investment portfolio, which already encompasses over 10,000 MW of renewable capacity worldwide, leveraging the firm’s extensive international experience in the energy sector to drive success in a new, high-growth market.
Capitalizing on Regional Trends
The launch of Radiant is strategically timed to capitalize on a powerful confluence of trends that are fundamentally reshaping the Middle East’s energy landscape. The platform’s strategy is anchored in the rapidly accelerating demand for distributed energy solutions, a demand propelled by several key factors. These include highly supportive government policies, or “policy tailwinds,” aimed at economic diversification away from fossil fuels and towards a more sustainable energy mix. Concurrently, consistently rising power consumption, driven by robust economic and population growth across the GCC, is placing increasing strain on traditional grid infrastructure, making on-site generation a more attractive option. Furthermore, there is an increasing focus from C&I customers themselves on both cost optimization and the fulfillment of corporate sustainability mandates, as global stakeholders and consumers demand greater environmental responsibility from businesses.
This strategic initiative is not an isolated event but rather a key part of a broader, deliberate strategy by I Squared to deepen its presence and influence throughout the Middle East. The firm already operates an office in Abu Dhabi and has announced plans to open a new office in Riyadh, placing it physically and strategically at the heart of the region’s most significant economic activity. This commitment to a strong on-the-ground presence is further solidified by high-level strategic collaborations. In 2025, I Squared signed Memorandums of Understanding (MOUs) with The Arab Energy Fund (TAEF) and the Public Investment Fund (PIF) of Saudi Arabia. These agreements signal a shared ambition among these powerful entities to accelerate the development of critical and sustainable infrastructure across the region, creating a collaborative ecosystem in which Radiant is perfectly positioned to thrive and contribute meaningfully to the Gulf’s energy transition.
A New Dawn for Regional Renewables
The establishment of Radiant Energy Solutions by I Squared Capital represents a well-capitalized and strategically sound entry into the Middle East’s distributed renewable energy sector. The venture is built upon the firm’s proven platform-building model, initiated with the cornerstone acquisition of an established Saudi solar developer, FAS Renewables, and its subsidiary, Zahra Energy. Backed by a significant US$150 million commitment and a clear objective to develop a 1GW portfolio, Radiant is strategically positioned to leverage the powerful tailwinds of the region’s energy transition. This shift is driven by a combination of progressive policy, sustained economic growth, and evolving corporate sustainability goals, which create fertile ground for the platform’s mission. The initiative not only introduces a major new player into the GCC’s decarbonization market but also reinforces I Squared Capital’s long-term commitment to investing in the region’s critical infrastructure.
