Fortum Corporation, a Finnish energy company, has won a Russian Capacity Supply Agreement (CSA) auction to develop 110 MW of solar capacity. The solar power project is set to be commissioned by 2021-2022.
Fortum will receive a guaranteed power price of €150 (~$173.86) per MWh for a period of 15 years.
In the same CSA auction, the Fortum-Rusnano wind investment fund, in which Fortum has 50 percent ownership, has won the right to build 823 MW of wind capacity. It is expected to be commissioned between 2021-2022. Under this agreement, a price of €60-90 (~$69.54-104.31) per MWh has been guaranteed for a period of 15 years.
Fortum-Rusnano had also won the right to develop 1,000 MW of wind power in June 2017 which will be commissioned by 2022.
The Russian CSA auctions were held between May 29 and June 9, 2018.
Fortum wants to maintain an asset-light structure and seeks to employ a strategy of forming potential partnerships and other forms of co-operation.
Earlier this month, Mercom reported that Fortum signed an agreement to sell a 54 percent stake in its solar power company in India to UK Climate Investments and Elite Alfred Berg. UK Climate Investments was set to buy 40 percent while Elite Alfred Berg will acquire 14 percent.
As per Fortum’s strategy to form partnership, it recently reached an agreement with Clean Motion to develop battery replacement systems in India. The battery replacement system will be first offered to Clean Motion customers and later it will be provided to all small electric vehicle manufacturers.
In December 2017, Fortum has commissioned 100 MW of solar photovoltaic (PV) projects at Pavagada Solar Park in Karnataka. This was Fortum’s fourth operational solar project in India bringing the total to 185 MW.
Image credit: Flickr
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer