Energy giant Shell has increased its global solar footprint with the acquisition of a 49% stake in Cleantech Solar, a Southeast Asia and India-focused solar company.
Shell said the move would provide the company with an “immediate path” in the potentially lucrative C&I solar markets in Southeast Asia and India.
Financial terms of the deal have not been disclosed, however Shell has retained the possibility to increase its position in the company after 2021.
Cleantech Solar has signed more than 120 contracts with local and multinational corporations in its target market, amassing a 200MW portfolio of operational solar installations.
Shell’s investment in the firm is expected to ramp up Cleantech’s ambitions in the space and Raju Shukla, the company’s chairman and founder, said it would provide a “tremendous boost”.
Cleantech is the second solar developer to have attracted Shell’s interest in 2018. Shell first acquired a 44% stake in US-based developer Silicon Ranch in a deal worth somewhere between US$193 – 217 million which, in a similar fashion to this deal, includes an option to increase its stake after 2021.
Marc van Gerven, vice president of solar and storage at Shell, said Cleantech Solar’s record had impressed the company.
“Asia is a significant commercial and industrial solar generation market for Shell and we are proud to work with Cleantech Solar as a leading solar company in the region,” he said.
May 26 - May 27, 2021
Looking at the drivers and dynamics of utility scale solar in the UK & Ireland over the next five years. This event will consider the immediate challenges as we enter the build phase in both these markets where we could see as much as 4GW deployed in 2021 alone! What developments will continue the growth of 100MW+ sites and what impact will government policy have on the rate of deployment in both markets?Join leading developers and manufacturers shaping the direction of one of Europe’s most active markets and hear from speakers with a history of influencing innovation and change.
Feb 03 - Feb 04, 2021
The business of solar is changing, as the industry scales up, technology, IT and new players to the market will add complexity. This sparks a host of opportunities such as co-location of solar and storage and the rise of unsubsidised solar projects as well as challenges which will question the very business model of European solar asset owners. Solar Finance & Investment Europe is the meeting place for institutional investors, sovereign wealth funds, solar, wind and storage funds and large energy buyers to do business.