Fortum Sells Stake In Indian Solar Portfolio To Gentari Renewables

Fortum Sells Stake In Indian Solar Portfolio To Gentari Renewables

Finland-based Fortum sold its ownership in the 185-MW Indian solar portfolio and is considering alternatives for its remaining operations in India.

Fortum signed an agreement to sell the remaining 43.75% share of its Indian solar power portfolio to Malaysia-based Gentari Renewables India Pte. Ltd., a subsidiary of clean energy solutions provider Gentari Sdn. Bhd. Gentari had emerged the winner in bids for Fortum’s India portfolio back in February.

The portfolio comprises four solar power plants in India with a total capacity of 185 MW. Fortum projects in India comprise Amrit (5 MW), Kapeli (10 MW), Bhadla (70 MW), and Pavagada (100 MW). In the transaction, the other owners – UK Climate Investments Lakeside Limited (40%) and a fund managed by Evli Fund Management Ltd (16.25%) – are also selling their ownership. In 2018–2019, Fortum sold 56.25% of the company.

Fortum is expected to record some profits from the divestment in connection with the closing of the transaction, expected to take place in the second quarter of 2024. In 2012, Fortum entered the Indian market and its businesses have mainly included the development of renewables.

After the announced divestment, Fortum still has EV charging services and a renewables development portfolio with projects at different stages in India. In line with its Nordic strategy, Fortum is limiting its exposure in India and evaluating alternatives for these remaining operations and will not make any further commitments in India. The remaining net assets including guarantees amount to approximately EUR 30 million.