Finland’s Fortum to sell 54% Stake in Indian Projects

“This project demonstrates the growing maturity of India’s secondary market for renewables – creating an environment in which private investors have the confidence to invest in new greenfield projects that will accelerate the decarbonization of India’s economy”

With an aggregate capacity of 185 MW in India, Finland’s Fortum sign an agreement to sell a 54% share on its solar power company to UK Climate Investments (UKCI) 40% and Elite Alfred Berg (EAB) 14%.

However, the Elite Alfred Berg can further buy up to additional 16% from Fortum. The Fortum will have a minority ownership in the company and will be responsible for operation and maintenance (O&M) services for the operations.

The transaction is subject to regulatory approvals in the EU and is expected to close at the beginning of the third quarter 2018.

Kari Kautinen, SVP, M&A and Solar & Wind Development at Fortum, said: “Our ambition is to continue the partnership also for future solar power projects. The arrangement frees up capital for further investments and enables Fortum to continue to utilize its key competencies to develop, construct and operate solar power plants in India.”

“This project demonstrates the growing maturity of India’s secondary market for renewables – creating an environment in which private investors have the confidence to invest in new greenfield projects that will accelerate the decarbonization of India’s economy,” said Richard Abel, managing director of UK Climate Investments.

UKCI is a £200 million pilot investment programme mandated to invest in green projects in India and across sub-Saharan Africa, while EAB is an investment service company.

“In the present low-interest environment, there is robust investor demand for assets offering regular, predictable cash yield, such as infrastructure and utilities. Solar power production in India makes a lot of sense, as the country offers one of the best solar resources in the world, strong economic growth, and sound government support. At the same time, efficient CO2-free energy generation complements our sustainable and responsible investment offering perfectly”, says Daniel Pasternack, Elite Alfred Berg CEO.