British energy giant Shell has brokered a deal to purchase Indian renewable energy supplier Sprng Energy in a deal valued at $1.55bn.

Mauritius-incorporated Solenergi Power , which was set up by buyout firm Actis, is the direct shareholder of Sprng Energy.

As per the agreement, Shell Overseas Investment agreement will buyout Solenergi Power from Actis.

Sprng Energy, which was established in 2017, supplies solar and wind power to electricity distribution companies in India.

Currently, the company has 2.9 gigawatts-peak (GWp) of renewable energy assets in its portfolio, of which 2.1GW is operational and the rest under-construction. It also has 7.5GWp of projects in the pipeline.

The deal is expected to almost triple Shell’s renewable energy capacity in operation, as it seeks to become a net-zero emissions firm by the year 2050.

Sprng Energy will operate as a wholly-owned subsidiary of Shell within its renewable and energy solutions integrated power business.

Sprng Energy will also retain its existing brand, Shell in its statement said.

Shell Integrated Gas, Renewables and Energy Solutions director Wael Sawan said: “This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India.

“Sprng Energy generates cash, has an excellent team, 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.”

The deal, which is subject to receipt of regulatory approval, is expected to conclude later in 2022.

The deal comes amid reports that Shell is preparing binding bids for Q-Energy’s renewable projects in Spain. The portfolio includes developing projects with the combined capacity to generate around 3.6GW of clean energy.