Fortum announces to invest EUR 200–400 million in solar projects in India

Finnish utility firm Fortum on Tuesday announced to invest euros 200-400 million (Approx. Rs 15100-30200 crore) in solar power projects in India.

Fortum in a statement said “the country offers one of the best solar resources and a sound government support for the development of the solar sector. The country provides a good platform for Fortum to further develop its business in solar also elsewhere.”

The company will target some large-scale greenfield to enable economies of scale. Additionally, the company will consider seeking possible partnerships or other forms of cooperation, which would on long-term create a more asset-light structure.

Fortum will select projects in India from various central, state and public sectors undertaking (PSU) schemes, which would guarantee a long-term power purchase agreement (PPA), taking into account Fortum’s Group financial targets.

Fortum currently has 15 megawatts (MW) of solar capacity in India. In January 2016, Fortum won a reverse auction for a 70 MW project with a fixed tariff for 25 years.

The company has decided to to bid for an additional 100 MWs in India, with a fixed tariff for 25 years.

“With technologies rapidly maturing, utility competences are becoming increasingly important in solar business, and expansion in solar fits very well Fortum’s vision to be the forerunner in clean energy. Overall, Fortum is targeting a gigawatt-scale wind and solar portfolio,” said the company.