Finnish firm Fortum acquires 35 MW of solar power capacity in Russia

Finnish power company Fortum announced on November 30, 2017 that it had signed an agreement to acquire three solar power companies from Hevel Group, Russia’s largest integrated solar power company. The transaction is expected to be closed by the end of 2017.

The Pleshanovskaya (10 MW) and Grachevskaya (10 MW) solar power plants are located in the Orenburg region and the Bugulchanskaya (15 MW) solar power plantin the Republic of Bashkortostan. All three power plants are operational and will receive Capacity Supply Agreement (CSA) payments for approximately 15 years after commissioning at an average CSA price corresponding to approximately EUR 430/MWh. The plants were commissioned in 2016 and 2017.

Hevel Group, a joint venture between Renova Group and JSC Rusnano, founded in 2009, will provide operation and maintenance services for all three power plants.

Fortum currently operates 85 MW of solar capacity in India and an additional 100 MW is estimated to be commissioned during 2017.

Based on Fortum’s strategy the target is to create a gigawatt-scale solar and wind portfolio. Fortum’s ambition is to make selective investments in renewables building on its competences and technical know-how. Fortum’s long-term ambition is to have approximately 500 MW of renewable capacity in Russia.

In 2017, the total volume of the solar on the Russian wholesale market amounts to 224 MW. The largest solar power plants are located in the Orenburg region, and the republics of Bashkortostan and Altai. Based on the results of the capacity selection auction for renewables (RES), it is expected that an additional 1.5 GW of solar power will be added to the wholesale market in 2018-2023.

Source: Press Release by Fortum. Image Credit: zak zak/Flickr (CC BY 2.0). Logo: Fortum.