Finland’s Fortum to spend up to EUR 400m on Indian solar

Fortum Oyj (HEL:FUM1V) plans to invest between EUR 200 million (USD 229m) and EUR 400 million in solar projects in India as part of a plan to set foot into new markets and build a gigawatt-scale wind and solar portfolio.

"Fortum will carefully select a few geographies with excellent solar conditions."

The Finnish energy group said on Tuesday India will be the first solar destination because of its resources and significant government support. Fortum has just decided to bid for an additional 100 MW of solar power capacity there, after winning a reverse auction for a 70-MW project in January 2016, it added. Both plants will be selling power at a fixed price for 25 years.

Fortum also said it will consider establishing partnerships or other forms of cooperation in a drive to create a more asset-light structure in the long term. Presently, the company has 15 MW of installed solar parks in India.

The company noted that an expansion in the solar sector aligns with its vision to be the forerunner in clean energy. Fortum is engaged in the supply of electricity, district heating and cooling. In the renewable energy industry it focuses on wind, solar and wave power, with activities in Sweden, Russia, France and England.

(EUR 1.0 = USD 1.145)

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