Global oil and gas major Shell plc is set to expand its renewables footprint in India with the acquisition of Solenergi Power Private Limited, the flagship company of Sprng Energy platforms, from Actis Solenergi —both for a total of $1.55 billion.
Incorporated in Mauritius, Solenergi holds 2.9 GW solar and wind energy assets, comprising 2.1 GW of operational and 800 MW contracted capacity, along with another 7.5 GW renewable energy projects in the pipeline. It supplies this clean energy to Indian discoms. Actis recalls setting up Sprng Energy in 2017 with 330 MW.
"This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India," said Shell's Integrated Gas, Renewables and Energy Solutions Director, Wael Sawan. "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."
Shell is making the acquisition through Shell Overseas Investments B.V. Subject to regulatory clearances, the deal is expected to close later in 2022.
Currently, Shell operates in India's solar energy domain through its investments in rural clean energy microgrid company Husk Power Systems and in Singapore headquartered Cleantech Solar that's active in India's commercial and industrial solar (C&I) segment.
Targeting a net zero emissions target by 2050 under its Powering Progress Strategy, Shell counts its operational renewable energy capacity to have grown to 1 GW globally, along with 4.7 GW either under operation, under construction and/or committed for sale. The pipeline is huge with 38 GW of future renewables capacity.
As for Actis, Srpng Energy was funded by Actis Energy 4 fund. It has raised $6 billion for Actis Energy 5 fund to be invested in clean energy transition. Actis' Head of Energy Infrastructure Lucy Heintz said, "We look forward to creating more Sprngs with our latest fund, Actis Energy 5."
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