BRITISH multinational Shell signed an agreement with Actis Solenergi Limited to acquire the Indian renewable energy platform Sprng Energy for $1.55 billion (£1.23 bn).

Shell has made the investment commitment through its wholly-owned subsidiary Overseas Investment BV.

Sprng Energy supplies solar and wind power to electricity distribution companies in India. Its portfolio consists of 2.1 GWp of operating assets and 0.8 GWp contracted assets, with a further 7.5 GWp of renewable energy projects in the pipeline, Shell said in a statement on Friday (29).

The solar and wind assets the energy major acquires through the deal will triple its present renewable capacity in operation.

According to Wael Sawan, Shell’s director for integrated gas, renewables and energy solutions, the deal positions the company “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, a 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.”