Fortum won the right from Karnataka Renewable Energy Development Ltd. to build a 250 megawatt (MW) solar power plant in Pavagada solar park in Tumkur district, Karnataka, India.
Commissioning of the solar power plant is expected in the third quarter of 2019. The capital expenditure is estimated to be approximately EUR 120 million and the solar park will be entitled to a fixed tariff of 2.85 INR/kWh for 25 years. Fortum already has a 100 MW operating plant in Pavagada solar park.
“We are pleased to launch a new solar development project in India. We have gained good experience in India where we have successfully developed solar power for several years. As continuation to the previous transaction in which we sold a stake in our existing plants in India and partnered up with UK Climate Investments and Elite Alfred Berg, Fortum now continues to grow its solar portfolio”, says Kari Kautinen, SVP, Solar & Wind Development and M&A.
Fortum’s ambition is to increase its solar and wind portfolio to gigawatt scale in its home markets. Fortum’s business model in renewables consists of development, construction and asset management of solar and wind assets, and selective partnering with financial investors once the plants have been commissioned.
The company currently operates solar capacity of 185 MW in India and 35 MW in Russia. Fortum’s total operating wind capacity amounts to 142 MW with three additional projects currently under construction and sizeable future pipeline in the Nordics and Russia.