Finnish power utility Fortum has continued the expansion of its solar energy business by acquiring 35 MW of solar plants in Russia.
Fortum said the seller was Russian solar module maker and project developer Hevel Solar, without providing details on the financial terms of the deal.
Two of the plants, the Pleshanovskaya and Grachevskaya solar power plants (both with a capacity of 10 MW each), are located in the Orenburg region, while the third facility, the 15 MW Bugulchanskaya solar plant, was installed in the Republic of Bashkortostan.
All of the projects were commissioned between 2016 and 2017 and currently receive guaranteed capacity payments for a period of 15 years under the Russian Government’s capacity supply agreement (CSA), after commissioning at an average CSA price corresponding to approximately €430/MWh, Fortum added.
The Finnish power provider currently owns eight power plants in the Chelyabinsk and Tyumen regions, mainly comprising gas-fired combined heat and power (CHP) capacity. To date, the company has built over 2 GW production capacity that receives guaranteed capacity payments, currently for a period of 10 years under the Russian Government’s CSA scheme. In 2016, Fortum’s Russian operations represented around a quarter of its sales and about a third of the comparable operating profit.
Fortum is targeting a GW-scale wind and solar portfolio. The company aims to invest between €200 million and €400 million in large-scale solar projects in India. In early April, Fortum completed its third solar park in India: a 70 MW PV plant located at the Bhadla solar park in Rajasthan, northwestern India. The company is also planning to build a solar park in Luunja Municipality, near Tartu in northeastern Estonia.