Sprng Energy has a portfolio of 2.9GWp in India, comprising 2.1GW of operating and 0.8GW contracted assets, with an additional 7.5GW of renewable energy projects in its pipeline
Shell has agreed to acquire Sprng Energy. (Credit: Jethro Carullo on Unsplash)
British oil and gas company Shell, through its wholly owned subsidiary Shell Overseas Investment, is set to acquire India-based Sprng Energy for $1.55bn
The company has signed the acquisition agreement with the UK-based investor Actis, which owns Sprng Energy through its Mauritius-based business unit Solenergi Power
Established in 2017, Sprng Energy is engaged in supplying solar and wind power to electricity distribution companies in India.
The company has a portfolio of 2.9GW, comprising 2.1GW operating and 0.8GW contracted assets, with an additional 7.5GW of renewable energy projects in its pipeline.
Sprng Energy’s asset portfolio is said to contribute to the Indian government’s goal of achieving 500GW of renewable energy capacity by 2030.
Upon closing the transaction, Sprng Energy would have its existing brand and operate as a fully owned subsidiary of Shell, within its Renewables and Energy Solutions Integrated Power business.
Shell integrated gas, renewables and energy solutions director Wael Sawan 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.
“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.”
With the acquisition of Sprng Energy’s solar and wind assets, Shell is expected to triple its current renewable capacity in operation, supporting its Powering Progress initiative.
Announced in February last year, its Powering Progress strategy aims to develop an integrated power business that help achieve its goal of becoming an energy business with net-zero emissions by 2050.
Last month, ScottishPower and Shell have announced their plans to invest a total of £75m to support the growth of the offshore wind industry in Scotland.