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<p><a href="https://www.fortum.com/en/pages/default.aspx" target="_blank" rel="noopener">Fortum</a>, a Finnish energy company, has 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 will buy 40 percent while Elite Alfred Berg will acquire 14 percent.</p>
<p>Elite Alfred Berg has the option to buy up to an additional 16 percent from Fortum. The total capacity of this portfolio is 185 MW. In this transaction, Fortum will retain a significant minority ownership position in the solar power company and continue to provide operation and maintenance services based on a long-term agreement.</p>
<p>The total consideration from the divestment of the 54 percent stake on a debt and cash free basis, including the effect of deconsolidating Fortum&#8217;s minority part of the net debt, is expected to be approximately €150 million (~$185 million). The positive impact on Fortum&#8217;s results from selling part of its solar portfolio will be approximately €20 million (~$23 million) and will be booked in the M&amp;A and Solar and Wind Development unit. The transaction is subject to regulatory approvals in the EU and is expected to close in the beginning of the third quarter 2018.</p>
<p>According to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">India Solar Project Tracker</a>, Fortum India&#8217;s operational solar projects include:</p>
<ul>
<li>A 5 MW solar project in Rajasthan under the National Solar Mission (NSM) Phase-I, Batch 1, for which a 25-year power purchase agreement (PPA) has been signed with NTPC Vidyut Vyapar Nigam Limited (NVVN) at a tariff of ₹12.75 (~$0.195)/kWh.</li>
</ul>
<ul>
<li>A 10 MW solar project in Madhya Pradesh under NSM Phase-II, Batch 1, for which a PPA was signed with Solar Energy Corporation of India (SECI) at a fixed tariff of ₹5.45 (~$0.083)/kWh along with viability gap funding (VGF) for a 25-year period.</li>
</ul>
<ul>
<li>Another 70 MW solar project in Rajasthan under NSM Phase-II, Batch 2, was <a href="https://mercomindia.com/fortum-commissions-70-mw-bhadla-solar-park-project-previous-record-low-bid-rs-4-34kwh/" target="_blank" rel="noopener">commissioned</a> with a PPA signed by NTPC at a tariff of ₹4.34 (~$0.066)/kWh for a 25-year period.</li>
</ul>
<ul>
<li>The 100 MW solar project in Pavagada Solar Park under NSM Phase-II, Batch 2. PPAs for this project were signed in June 2016 at a tariff of ₹4.79 (~$0.073)/kWh for a 25-year period.</li>
</ul>
<p>In a stock exchange release dated April 12, 2016, Fortum said that it was seeking to allocate funds ranging from €200 (~$235.676 million) million to €400 million (~$471.352 million) from its planned growth capital for Indian solar projects.</p>
<p>In October 2017, Mercom <a href="https://mercomindia.com/fortum-part-indian-solar-assets-sale/" target="_blank" rel="noopener">reported</a> that Fortum appointed Barclays to serve as its banking partner and facilitate the sale of a stake in its operational Indian solar assets.</p>
<p>Image credit: MMEPL</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
</div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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Fortum to Sell 54 Percent Share of its Indian Solar Portfolio

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