Fortum won the right from Gujarat Urja Vikas Nigam to build a 250 MW solar power plant in Raghanesda solar park in Banaskhata district of Gujarat. The plant will be commissioned 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 2.89 INR/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. 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 is currently under construction and expected to be commissioned in 2019. In Russia, Fortum has 110 MW of solar capacity under development.