Shell Plans Full Exit from Indian Renewable Energy Unit, Set to Relaunch Sprng Energy Sale Process – EQ
In Short : Shell has revived plans to sell its renewable arm, Sprng Energy, and is preparing a full exit from India’s clean energy sector. The company has appointed Barclays to manage the sale process, covering Sprng’s 5 GW wind and solar portfolio. Shell acquired Sprng from Actis in 2022 for $1.5 billion, but earlier partial-sale talks had stalled over valuation gaps.
In Detail : Shell Plc has decided to restart the sale process of its renewable energy arm, Sprng Energy, with a plan for a complete exit from the Indian renewable market. The move marks a strategic shift as the energy major reevaluates its global clean energy investments to focus on assets offering stronger returns and better portfolio alignment.
The company has reportedly appointed Barclays as the financial advisor to manage the transaction. This follows earlier attempts to sell portions of Sprng Energy’s portfolio, which did not progress due to valuation mismatches and limited investor interest. This time, Shell aims for a full exit, inviting bids for the entire Sprng Energy platform.
Sprng Energy currently owns and operates around 5 GW of renewable capacity in India, including solar and wind projects, with an additional development pipeline under construction. These assets are spread across multiple Indian states and represent one of the country’s largest private renewable portfolios, making it an attractive acquisition for global infrastructure investors.
Shell had entered the Indian renewable energy sector by acquiring Sprng Energy from Actis in 2022 for approximately $1.5 billion. The acquisition was initially viewed as a major step in Shell’s global renewable expansion plan. However, changes in strategy and market dynamics have prompted the company to reassess its position in India’s renewable segment.
Previous discussions with potential buyers such as Sekura Energy had failed to reach a conclusion due to differences in pricing expectations. Investors had reportedly valued the assets lower than Shell’s asking price, leading to a halt in negotiations. With this renewed sale process, Shell is expected to seek offers from larger institutional investors and global funds.
Market experts believe the timing of Shell’s exit coincides with growing investor appetite for renewable assets in India. The government’s policy push, along with consistent energy demand growth, has made India a key destination for green infrastructure funds and pension investors seeking long-term stability and returns.
For Shell, the decision reflects its broader corporate strategy of balancing profitability with sustainability. The company continues to invest in low-carbon solutions but is increasingly focused on markets and projects where it can maintain operational control, scalability, and financial efficiency without exposure to regional risks or regulatory uncertainty.
Sprng Energy, on its part, continues to operate its existing assets efficiently and remains one of India’s most reliable renewable producers. Even as the ownership changes, the projects are expected to remain operational, contributing significantly to India’s renewable capacity expansion and clean energy transition goals.
Industry observers say Shell’s exit does not signal a decline in global interest in Indian renewables but rather a reshuffling of ownership toward investors specializing in green infrastructure. The sale, once completed, could potentially bring in a new wave of capital and partnerships, reaffirming India’s position as a global hub for renewable energy investments.
