Shell Divests India's Sprng Energy in $1.8 Billion Deal with Aditya Birla
Shell has agreed to sell its Sprng Energy renewables business in India to Aditya Birla Renewables for $1.8 billion, as part of its strategy to streamline and improve returns in its power portfolio.
Shell has signed an agreement with Aditya Birla Renewables to sell 100% of Solenergi Power Private, which includes the Sprng Energy group of companies, for $1.8 billion.
Sprng Energy supplies solar and wind power to electricity distribution companies across India. Its portfolio comprises 5.0 gigawatts-peak (GWp) of assets, made up of 3.3 GWp of operating capacity and 1.7 GWp under contract. The deal includes Sprng Energy's physical assets and commercial contracts, and its employees will continue with the new owner.
"This agreement reflects Shell's continued focus on adjusting the portfolio in our power business," said Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell. "We are high-grading our power portfolio and recycling capital in service of our asset-backed trading strategy outlined in Capital Markets Day 2025. This is another step in building a more focused, competitive and resilient business while improving returns year on year towards 2030."
The sale forms part of a broader asset-backed trading strategy for Shell's Power business, which involves high-grading the portfolio and rebalancing towards flexible generation, with a target of around 10% ROACE by 2030. Shell said India remains an important market, where it continues to operate an integrated LNG value chain, alongside its Mobility and Lubricants businesses, the latter recently expanded through the acquisition of Raj Petro Specialities. Aditya Birla Renewables, Aditya Birla Group's renewable energy platform, is backed by Global Infrastructure Partners, part of BlackRock, and operates a pan-India portfolio of solar, wind, hybrid, floating solar, and battery storage projects.
The transaction value is subject to customary adjustments at closing, including net debt and capex adjustments, and is expected to complete by the end of 2026.
