Fortum Wins Right to Build 250 MW Solar Project in India

Fortum will build and operate a 250 MW solar plant in Rajasthan at a fixed tariff rate of Rs 2.48/kWh for 25 years.

Finland-based Fortum has won the right from Solar Energy Corporation of India (SECI) to build a 250 MW solar power plant in Rajasthan, India.

The project is expected to be commissioned in the fourth quarter of 2020. The solar park will be entitled to a fixed tariff of Rs 2.48/kWh for 25 years.

Based on its strategy, Fortum will continue to build on its long-standing expertise to grow in CO2-free power generation. In solar and wind, the ambition is to increase the solar and wind portfolio to a multi-gigawatt scale. Fortum’s business model in renewables consists of development, construction, and asset management of solar and wind assets. Fortum utilises partnerships and other forms of co-operation to maintain a more asset-light structure.

The company currently operates a solar capacity of 185 MW in India and 35 MW in Russia. In June 2018, Fortum won the right to build 250 MW of solar in India which currently is under construction and expected to be commissioned in 2019. In Russia, Fortum has 110 MW of solar capacity under development.

In June 2018, With an aggregate capacity of 185 MW in India, Fortum signed 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 an additional 16% from Fortum. The Fortum will have minority ownership in the company and will be responsible for operation and maintenance (O&M) services for the operations.

Kari Kautinen, SVP, M&A and Solar & Wind Development at Fortum, at the time, 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 utilise its key competencies to develop, construct and operate solar power plants in India.”