Shell Triples Renewable Energy Capacity in $1.6 Billion Acquisition
In a deal that will triple its operational renewable energy capacity, energy giant Shell announced today the acquisition of Solenergi Power Private Limited, the direct shareholder of the Sprng Energy group of companies in India, from sustainable infrastructure investor Actis for $1.55 billion.
Launched by Actis in 2017, Sprng supplies solar and wind power to electricity distribution companies in India, with a current portfolio of more than 2. 9GW-peak of assets, and another 7.5 GW of projects in its pipeline.
According to Shell, the deal will help the company deliver its Powering Progress strategy. Launched last year, the strategy details how it will achieve its target to be a net-zero energy business by 2050 across Scope 1, 2 and 3 emissions, and invest in renewable and clean energy solutions. The company recently announced a relocation of its headquarters to the UK from the Hague as part of an initiative to help speed up the delivery of its strategy to become a net zero emissions business. Shell currently has 1 GW of renewable generation capacity in operation, another 3.7 GW under construction or committed for sale, and a further 38 GW of renewable generation capacity in its pipeline of future projects.
Wael Sawan, Shell’s Integrated Gas, Renewables and Energy Solutions Director, said:
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India. 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.”
The transaction comes as renewables are set to become an increasingly important energy source for citizens across India. According to the country’s Ministry of Power and New & Renewable Energy, renewable energy is estimated to comprise approximately 60% of India’s installed power capacity by 2030, from 24% in 2020.
Sanjiv Aggarwal, Partner, Energy Infrastructure at Actis, said:
“Sprng is a best-in-class energy platform delivering clean, reliable power to millions of people across India. We remain committed to the Indian market and its ecological transition, and we hope to deploy a further US$1 billion in the region by the end of 2026.”