In a deal worth about $1.8 billion, Shell has agreed to sell almost 80 percent of its renewable power portfolio to the clean energy arm of the Aditya Birla Group, Aditya Birla Renewables (ABREN). The deal for Sprng Energy is one of the biggest in India's renewable energy market and a sign of the country's clean energy revolution. The deal also underlines important topics such as renewable energy, Shell, Aditya Birla Renewables, Sprng Energy, and India clean energy.

The agreement will involve ABREN buying Sprng Energy, a leading platform for renewable energy, which has 5 GW of installed and under construction capacity. The purchase is expected to be around 60% of Shell's overall renewable energy capacity of 6.1 GW as of the end of 2025. The agreement, if finalized, will help to significantly enhance ABREN's competitive position in the fast growing renewable energy sector in India and will also be consistent with Shell's global business strategy.

Sprng Energy’s Journey Under Shell

Sprng Energy was founded in 2017 by sustainable infrastructure investor, Actis, and soon became a top renewable energy developer in India. In 2022, Shell paid $1.55 billion for the company as part of its efforts to move the company's low-carbon energy business into the fast lane.

When the acquisition was made, Shell explained the acquisition would triple its operational renewable energy capacity and support it in the long-term "Powering Progress" strategy. The plan was to grow investments in renewable energy and clean energy solutions, and become a net zero energy business by 2050. In the last few years, Sprng has built up a significant solar and wind portfolio, positioning itself as one of the leading solar and wind platforms in India.

Shell refocusing its power business.

The sale is a result of Shell's new corporate strategy, announced in March 2025, that focuses on boosting the return on its power business by optimizing its asset portfolio. Instead of leaving the renewable energy industry altogether, the company is looking to shift its investments towards flexible power generation and asset-backed energy trading.

The recycling of the capital will assist business performance, Shell said, and will help the company meet its annual average capital employed (ROACE) target of 10% by 2030.

In a statement, Machteld de Haan, Shell's President of Downstream, Renewables and Energy Solutions, said the deal is part of Shell's ongoing effort to continue to diversify its power business. The sale is aligned with the strategy outlined at Capital Markets Day 2025, where high-quality assets and capital discipline are key," she said.

BlackRock-Backed ABREN Grows Quickly.

The deal is a significant move for Aditya Birla Renewables as it expands its renewable energy portfolio. The deal comes in the wake of Global Infrastructure Partners (GIP), BlackRock's infrastructure investment platform, investing in a minority stake in ABREN in late 2025 to support its long-term expansion plans.

The acquisition will be funded from debt, equity contribution from Grasim Industries, the Aditya Birla Group's flagship company, and funds under GIP. The funding is anticipated to enable Sprng Energy to continue to grow its business by adding renewable energy projects and integrate the business.

The figure of total renewable energy capacity under operation and development will rise to about 9.3 GW after the completion of the transaction and ABREN will become one of the biggest renewable energy companies in India.

Supporting India’s Clean Energy Ambitions

The deal follows the ongoing momentum of investments in renewable energy in India to fulfil long-term climate and energy security targets. The country has targeted an installed renewable energy capacity of 500 GW by 2030, with about 50% of the electricity generation capacity being from non-fossil fuel sources, and has pledged to reduce its emission intensity by 45%.

The Indian government has now declared that it has reached 50% non-fossil fuel power installed capacity, ahead of 2030. Acquisitions and investments, like Sprng Energy, on a larger scale are expected to contribute significantly to the further development of renewable infrastructure throughout the country.

With the market demand for clean electricity increasing from industrial, commercial and residential consumers, businesses are significant supporters of the large scale, renewable electricity power platforms.

Options for Targeting Long-Term Growth for ABREN.

“This is an important milestone on ABREN's journey of growth,” said Kumar Mangalam, Chairman of the Aditya Birla group. The combination of Sprng Energy and ABREN is a highly complementary renewable energy platform with diversified portfolio and development pipeline, he said.

The merger of the two businesses will enable the company to continue growing, targeting its renewable energy capacity to exceed 20 GW in the coming years, the company said. The deal is also likely to boost the company's footprint in India's continued energy transition – one of the world's biggest clean energy transitions – as it strengthens its ability to contribute to the nation's energy transition.

The Shell-ABREN deal highlights the ongoing transformation of the renewable energy industry, as companies adapt their strategies to meet new business needs and longer-term investors and infrastructure platforms grow in their footprint in emerging markets like India.