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Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc (Shell), today signed an agreement with Actis Solenergi Limited (Actis) to acquire 100% of Solenergi Power Private Limited for $1.55 billion and with it, the Sprng Energy group of companies.
Sprng Energy supplies wind and solar power to Indian electricity distribution companies. Its assets portfolio includes 2.9 gigawatts peak (GWp) and 0.8GWp contracted assets. There are also 7.5GWp of renewable energy projects in its pipeline.
Wael Sawan, Shell’s Integrated Gas, Renewables and Energy Solutions director, said that this deal places Shell as one the leading movers in India’s truly integrated energy transition company. It will allow Shell to be a leader in the power value chain in India, where electrification is on an unprecedented scale and there is strong demand for renewables. Sprng Energy is cash-generating, has a strong team, a proven development track record, and a healthy growth pipeline. Sprng Energy can leverage Shell India’s thriving downstream and customer-facing businesses to provide even greater growth opportunities.
Shell will triple its current renewable capacity and help to deliver its Powering Progress strategy by acquiring the solar and wind assets it acquires in this deal. Shell’s Powering Progress strategy is to build a world-class integrated power company. This will allow it to achieve its goal of becoming a profitable net zero emissions energy business by 2050.
The transaction is subjected to regulatory clearance. It is expected that the transaction will close in 2022.