Shell to buy Actis-owned renewables firm Sprng Energy for $1.55 bn in India

Deal to help Shell triple its renewable energy capacity in operation

British energy major Shell on Friday said its subsidiary Shell Overseas Investments have signed an agreement with buyout firm Actis to acquire the Indian renewable energy platform Sprng Energy for $1.55 billion (Rs 11,800 crore).

Sprng Energy, an Actis Energy 4 fund investment, supplies solar and wind power to electricity distribution companies in India. It has 2.9 gigawatts-peak (GWp) of solar and wind energy assets in its portfolio, with 7.5 GWp of renewable energy projects in the pipeline.

More importantly, the deal will help Shell triple its renewable energy capacity in operation, which currently stands at 1 GW, as it seeks to become a net-zero emissions company by 2050.

"This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India," Wael Sawan, director of Shell’s integrated gas, renewables and energy solutions division, said. “It will enable Shell to become a leader across the power value chain in a rapidly growing market," he added.

Under the deal, Shell will acquire Solenergi Power Private Ltd, the direct shareholder of Sprng Energy, which was set up in 2017 with a seed asset of 330 megawatts-peak. In five years, Actis was able to scale up the platform thanks to hands-on operational experience, it said.

“We look forward to creating more Sprngs with our latest fund, Actis Energy 5,” said Lucy Heintz, partner, head of energy infrastructure at Actis. Actis Energy 5, whose closure was announced in October 2021, has $6 billion of investable capital.

Bank of America advised Actis on the deal, while Standard Chartered was the investment banker to Shell. The transaction is pending regulatory approval and is expected to close later this year.