Energy company Shell today announced it will acquire Indian renewable energy developer Sprng Energy and expects to close the transaction later this year. Shell Overseas Investment, an arm of Shell, shall acquire Sprng Energy from UK investor Actis, which owns Sprng through its Mauritius-based arm Solenergi Power.
Shell Overseas Investment has agreed to acquire 100% of Solenergi Power for $1.55 billion and, with it, the Sprng Energy group of companies.
Established by Actis in 2017, Sprng has more than 2.9 GWp of assets in India (2.1 GWp operating and 0.8 GWp contracted) with a further 7.5 GWp of renewable energy projects in the pipeline. It supplies solar and wind power to electricity distribution companies in India.
Shell has 1 GW of renewable generation capacity in operation globally. The acquisition of Sprng Energy’ solar and wind assets will triple its present renewable capacity in operation.
The deal also positions Shell as one of the first movers in building a truly integrated energy transition business in India. In India, its gas business (Shell Energy) serves customers through a fully-owned and integrated value chain. It has also invested in companies like Husk Power Systems and Cleantech Solar Pte Ltd.
Wael Sawan, Shell’s Integrated Gas, Renewables and Energy Solutions Director, believes the acquisition 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.
“Sprng Energy generates cash, has an excellent team, strong and proven development track record and a 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.
Sprng Energy will retain its existing brand and operate as a wholly-owned subsidiary of Shell within Shell’s Renewables and Energy Solutions Integrated Power business.
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