Fortum won the right from Gujarat Urja Vikas Nigam Ltd. to build a 250 megawatt (MW) solar power plant in Raghanesda solar park in District Banaskhata, Gujarat, India.
Commissioning of the plant is expected in the fourth quarter of 2020. The capital expenditure is estimated to be approximately EUR 135 million and the solar park will be entitled to a fixed tariff of Rs. 2.89 /kWh for 25 years.
Based on its strategy, Fortum will continue to build on its
long-standing expertise to grow in CO2-free power generation. In solar and
wind, the ambition is to increase the solar and wind portfolio to a
multi-gigawatt scale in home markets said the company in a statement.
Fortum’s business model in renewables consists of development, construction and asset management of solar and wind assets. Fortum utilises partnerships and other forms of co-operation to maintain a more asset-light structure.
The company owns 85 MW solar capacity in India and 35 MW in Russia. In June, Fortum won the right to build 250 MW of solar in India which currently is under construction and expected to be commissioned in 2019. In Russia, Fortum has 110 MW of solar capacity under development.