Shell & Green Tie Capital’s Solar Project in the Offing in Spain

Global energy conglomerate, Shell plc, and Green Tie Capital- investment and development services provider related to renewable energy, have decided to work together to develop more than 2 GW of solar projects in Spain. It is anticipated that the initiatives will progress all over Spain.

Nickel Asia Corp (NAC) subsidiary Emerging Power (EPI) and Shell business unit Shell Overseas Investments had signed a joint venture agreement in July 2022 to set up the project in the Philippines. The partners will construct, own, operate, and maintain onshore renewable projects across the country, with a primary focus on utility-scale solar photovoltaic projects.

In a similar initiative, Shell and Eneco- a producer and supplier of natural gas, electricity and heat in the Netherlands, had joined hands to collaborate on the Hollandse Kust (west) (HKW) VI and VII lots as part of the Netherlands’ coast’s offshore wind tender process in May 2022. The Sprng Energy group of firms and Solenergi Power Private Limited were to be acquired by Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc (Shell), for $1.55 billion in the same month (Actis). The agreement is anticipated to virtually increase Shell’s operational renewable energy capacity as the corporation works to achieve net-zero emissions by the year 2050.

Under its integrated power business for renewable and energy solutions, Shell will run Sprng Energy as a wholly owned subsidiary. According to a statement from the corporation, Sprng Energy will keep its current name. Subject to regulatory approval, the transaction is expected to complete later in 2022. Sprng Energy, a 2017 startup, provides solar and wind energy to Indian electrical distribution businesses. The company now has 2.9 GWp worth of renewable energy assets in its portfolio, 2.1 GW of which are operational and the remaining GW are under construction. 7.5 GWp worth of projects are also now in the works.

Shell has come up with binding offers in April 2022 to purchase the energy assets in Spain owned by Q-Energy, which were valued at €1 billion in total. According to reports, Naturgy and the Austrian electricity company Verbund have also been putting together offers for the portfolio in addition to Shell. To capitalise on the increased demand from European energy businesses looking to meet various governments’ climate change goals, Spanish fund manager Q-Energy is selling solar assets.