Shell reached an agreement to transfer its renewable business Sprng Energy in India to Aditya Birla Renewables. The transaction encompasses 5 GWp of solar and wind capacity.
British energy company Shell plc agreed to sell 100% of Solenergi Power Private Limited, the company that groups Sprng Energy operations, to Aditya Birla Renewables Limited for USD 1.8 billion.
The transaction will be executed through Shell Overseas Investment B.V. and is subject to customary regulatory approvals. The companies expect to complete the process before the end of 2026.
The announced value considers adjustments related to net debt, available cash, and project capital expenditures. Therefore, the final consideration could vary when the formal closing of the transaction occurs.
Sprng Energy Contributes a Renewable Portfolio of 5 GWp
Sprng Energy develops and operates solar and wind energy facilities primarily intended to supply electricity distribution companies in India.
Currently, its portfolio totals 5 GWp. Of that capacity, 3.3 GWp corresponds to plants already in operation while another 1.7 GWp belongs to contracted or under-development projects.
The sale includes physical assets, commercial contracts, and the companies linked to the business. Shell indicated that Sprng Energy workers will retain their positions after the change of ownership to ensure operational continuity.
Shell had acquired the Indian company in 2022 for USD 1.55 billion. Four years later, the energy company decided to sell it as part of a broader review of its power portfolio and low-carbon investments.
Aditya Birla Will Expand Its Renewable Presence in India
For Aditya Birla Renewables, the purchase represents a considerable expansion of its clean generation platform. The incorporation of Sprng Energy’s 5 GWp will raise the group’s renewable portfolio to approximately 9.3 GW.
The purchasing company is part of the Aditya Birla Group and maintains activities in solar, wind, and hybrid projects distributed throughout India. The platform also has the backing of funds managed by Global Infrastructure Partners, a firm owned by BlackRock.
The planned financing will combine debt, capital contributions from Grasim Industries, and resources linked to Global Infrastructure Partners.
Likewise, the acquisition will strengthen Aditya Birla’s position in a market where electricity demand continues to increase and large industrial companies compete to expand their renewable generation assets.
Shell Adjusts Its Portfolio and Recycles Capital
Shell explained that the divestment is part of its strategy to concentrate resources on businesses with better returns and greater competitiveness.
Machteld de Haan, President of Downstream, Renewable Energy and Energy Solutions at Shell, noted that the transaction will contribute to building a more focused, competitive, and resilient business by 2030.
The company has reduced in recent years part of its low-carbon projects while strengthening areas such as liquefied natural gas, energy trading, and exploration and production operations.
The sale of Sprng Energy allows Shell to free up capital invested in renewable power generation without disrupting asset operations. For Aditya Birla, on the other hand, it offers a direct path to incorporate operating projects, existing contracts, and an expansion portfolio in one of Asia’s main energy markets.
The Transaction Awaits Regulatory Approval
The agreement must still pass reviews by competent authorities and meet customary closing conditions.
Until that process is completed, Sprng Energy will continue operating under the current structure. Once the purchase and sale is authorized, its solar plants and wind facilities, contracts, and employees will become part of Aditya Birla Renewables.
The transaction is shaping up as one of the largest recent acquisitions in India’s clean energy sector due to its value, the capacity involved, and the effect it will have on the buyer’s renewable portfolio.
Source: Shell
Photo: Shutterstock
