Shell has agreed to acquire India-based renewable power firm Sprng Energy for $1.55 billion. It aims to boost the energy company’s low-carbon output as it shifts away from traditional energy sources. Shell said it would buy 100 per cent of Solenergi Power, the flagship company of Sprng Energy group, from UK-based investor Actis. Sprng Energy supplies solar and wind power to electricity distribution companies in India. The deal, which is expected to close later this year, will triple Shell’s renewables capacity in terms of operations. The multinational oil and gas major aims to become a net-zero emitter by 2050.
Sprng Energy is a renewable energy platform set up in India by Actis – a leading global investor in sustainable infrastructure, with a total commitment of US$450mn of equity from Actis Energy Fund 4 to set up c.2.5GW (1.4% of 175 GW of target set up by Ministry of New and Renewable Energy, Government of India) of renewable energy capacity (solar and wind) by 2022. Till date, we have a cumulative contracted capacity of 3000.48 MWp out of which solar forms 2502.98MWp and balance 497.5MW wind. Further, 1633.98MWp of solar and 497.5MW of wind stands operational.