According to the reports, Royal Dutch Shell Plc is in talks to invest $500 million in state-run Convergence Energy Services Ltd (CESLdecentralized ) solar business. “Discussions have been ongoing for some time, and a final term sheet is likely to be completed soon. One of the two sources who requested anonymity added, “The anticipated investment is planned at the asset level.”
In 2016, Shell established its New Energies branch. It also owns a 49% ownership in Cleantech Solar Energy, a Singapore-based company with a 500-megawatt (MW) portfolio in nations including India. Global oil firms are increasingly interested in India’s green economy, which coincides with a growing global focus on enterprises that meet positive environmental, social, and governance (ESG) norms. Thailand’s PTT Group has purchased a 41.6% interest in Avaada Energy Pvt. Ltd for $454 million.
Malaysia’s state-owned oil and gas company Petronas, as well as French energy giant Total, are other global energy giants in India’s green energy field. Eni SpA of Italy, Statoil ASA of Norway, and Rosneft of Russia are all interested in exploring the possibilities.
CESL had previously told Mint that it was trying to raise $500 million through a stake sale at the asset level and that it was in talks with both Indian and international investors. The sale process will be managed by Deloitte.
Mahua Acharya, CESL’s managing director, and chief executive officer declined to comment.
“We do not comment on market speculation,” a Shell spokesperson said in an emailed response. A Deloitte spokesperson also declined to comment.
CESL plans to build a 9.4-gigawatt (GW) portfolio under the decentralized solar program during the next five years. This is estimated to result in a reduction of 27.55 million tonnes of greenhouse gas emissions. Shell operates a liquefied natural gas port in Hazira on India’s west coast and is one of the few foreign oil companies that have a retail fuel license in the country.
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