British energy behemoth Shell has announced that it will acquire India renewable energy platform Sprng Energy group in a $1.55 Billion deal of Solernegi Power Private Ltd. As per the agreement, the energy major’s subsidiary Shell Overseas Investments have signed a deal with buyout firm Actis, who uptil now, owned Sprng energy group, an Actis Energy 4 fund investment.
With this staggering deal, this will enable Shell to triple its renewable energy capacity in operation, which currently stands at 1 GW, as it aims to become a net-zero emissions company by 2050.
Wael Sawan, director of Shell’s integrated gas, renewables and energy solutions division, said, “This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India. It will enable Shell to become a leader across the power value chain in a rapidly growing market.”
Sprng Energy supplies solar and wind power to electricity distribution companies in India. It has energy assets worth 2.9 gigawatts-peak (GWp) of solar and wind energy with 7.5 GWp of renewable energy projects in the pipeline.
Actis owned Sprng energy through its direct shareholder, Solenergi Power Private Ltd, which was set up in 2017 with a seed asset of 330 megawatts-peak. In five years, Actis was able to scale up the platform thanks to hands-on operational experience and planning.
This latest move will keep Shell’s Powering Progress strategy on track, which is about developing a best-in-class integrated power business.
The transaction is subject to regulatory clearance and is expected to close later in 2022.