Fortum-Rusnano grabs 823 MW in Russian wind tender

Finnish utility Fortum Oyj (HEL:FORTUM) has won the right to build 110 MW of solar parks in Russia in the country's latest clean energy tender, while its partnership with Rusnano has secured 823 MW of wind projects.

The photovoltaic (PV) parks are scheduled for commissioning in the 2021-2022 period and will get a guaranteed power price of around EUR 150 (USD 177) per MWh for 15 years, Fortum said on Wednesday. Meanwhile, the Finnish utility’s 50/50 joint venture with Russian nanotechnology company Rusnano plans to add the 823 MW of wind power capacity in the years between 2019 and 2023, receiving a guaranteed power price of EUR 60-90 per MWh, also for 15 years.

Investment decisions related to the wind and photovoltaic (PV) projects will be made on a "case-by-case basis", Fortum said, reiterating its previously announced plans for an equity commitment of up to RUB 15 billion (USD 240m/EUR 203m) to back Russian projects secured in 2017 and 2018. Last summer, the Fortum-Rusnano JV was awarded the right to install 1,000 MW of wind parks in Russia by 2022. About 50 MW of that capacity is currently under construction now, it said.

Fortum’s long-term plans include entering potential partnerships and “other forms of cooperation” aimed at keeping “an asset-light structure.” The Finnish company’s goal is to have a gigawatt-scale solar and wind portfolio. Currently it owns 362 MW of PV and wind assets, 70 MW of which are in Russia.

Russia’s latest auction attracted 2,214 MW of wind projects, more than two-and-a-half times the available quota of 830MW. Bids for solar PV capacity totalled 554 MW, with a quota of just 150 MW.

(EUR 1.0 = USD 1.181)

(RUB 10 = USD 0.160/EUR 0.136)

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