Shell Completes Sprng Energy Acquisition from Actis

Energy major Shell plc via its wholly-owned subsidiary, Shell Overseas Investment B.V., has completed the 100 per cent stake acquisition of Solenergi Power Pvt Ltd (SPPL) for about USD 1.55 billion and with it, the Sprng Energy group of companies, from Actis Solenergi Ltd (Actis).

Subject to closing adjustments, about half of the transaction value would be cash Capex and the remainder would be debt obligations.

SPPL, incorporated in Mauritius, is the direct shareholder of Sprng Energy group of companies in India.

Sprng Energy, set up in 2017 by Actis, is a renewable energy platform based in Pune, India, and develops and manages renewable energy facilities such as solar and wind farms and infrastructure assets.

Through the acquisition of Sprng Energy’s solar and wind assets, Shell will triple its present renewable capacity in operation and help deliver its powering progress strategy. An important part of the strategy is to develop an integrated power business, which will help Shell reach its target of becoming a profitable net-zero emissions energy business by 2050.

Sprng Energy supplies solar and wind power to electricity distribution companies (Discoms) in India. Its portfolio consists of 2.9 GWp of assets, including 2.1 GWp operating and 0.8 GWp contracted, with a further 7.5 GWp of renewable energy projects in the pipeline.

However, 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.

In India, Shell’s existing gas business (Shell Energy) serves customers through a fully-owned and integrated value chain – competitive supply from a global LNG portfolio, re-gasification at the Hazira facility, and downstream customer sales. Shell has invested in companies like Husk Power Systems and Cleantech Solar Pte Ltd.

In February 2021, Shell announced its Powering Progress strategy, including details of how it expects to achieve its target to be a net-zero emissions energy business by 2050.