Shell has bolstered its renewables profile in India after signing a deal to buy Solenergi Power Private - and Sprng Energy group of companies - for US$1.55bn.
The deal was signed by Shell Overseas Investment B.V., a wholly owned subsidiary, with Actis Solenergi. Solenergi Power Private is incorporated in Mauritius and the direct shareholder of the Sprng Energy group of companies in India.
Sprng Energy, headquartered in Pune, will retain its existing brand and operate as a wholly owned subsidiary within Shell’s Renewables and Energy Solutions Integrated Power business. Its portfolio, covering solar and wind power to electricity distribution companies in India, consists of 2.9GWp of assets (2.1GWp operating and 0.8GWp contracted) with a further 7.5GWp of renewable energy projects in the pipeline.
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Wael Sawan, Shell’s Integrated Gas, Renewables and Energy Solutions Director.
“I believe it will enable Shell to become a leader across the power value chain in a rapidly growing market where electrification on a massive scale and strong demand for renewables are driving the energy transition.
He added Sprng Energy generates cash, has a proven development track record and healthy growth pipeline. "Sprng Energy’s strengths can combine with Shell India’s thriving customer-facing gas and downstream businesses to create even more opportunities for growth," he said.
The solar and wind assets Shell acquires through the deal will triple Shell’s present renewable capacity in operation and help deliver its Powering Progress strategy. An important part of Powering Progress is to develop a best-in-class integrated power business, which will help Shell to reach its target of becoming a profitable net-zero emissions energy business by 2050.
The transaction, subject to regulatory clearance, is expected to close later in 2022.