Fortum, the Finnish state-owned energy company, has announced its collaboration with Bank GPB on wind power generation in Russia. A 1.3 GW portfolio of wind projects is being transferred from the Fortum-Rusnano Wind Investment fund (50/50 joint venture) to a recently formed joint venture with Bank GPB for this purpose. The Fortum-Rusnano Wind Investment Fund joint venture will be dissolved following the transfer.
With its joint ventures with Bank GPB and RDIF, Fortum is Russia’s largest player in the renewable energy sector, with a portfolio of about 3.4 GW of wind and solar power parks and development projects. The overall capacity consists of wind and solar power facilities and projects, with 1.2 GW in operation, 0.3 GW under construction, and 1.9 GW in development.
In June 2021, Fortum decided to divest 500 MW of solar projects in India and signed an agreement with the global infrastructure investment firm Actis. Actis would receive ownership of the 250 MW Pavagada II and the 250 MW Rajasthan solar power plants as part of the agreement. The total consideration from the divestment is expected to be approximately $ 317.5 million on a debt and cash-free basis. The transaction is expected to be completed by the end of the first half of 2022.
REGlobal’s Views: Russia has been trying to increase in installed renewable energy capacity in the recent years and reducing its dependence on fossil fuels.
