Solar Business in India

Fortum started producing solar energy in India in 2013 by acquiring a 5-megawatt solar power plant in the state of Rajasthan, in north-western India. It was the first step in a process of building a small photo-voltaic (PV) solar portfolio with an aim to test different solar technologies.

The power plant’s nominal peak capacity is 5 megawatts and its annual production is approximately 9 gigawatt-hours. The power plant was constructed as part of the Jawaharlal Nehru National Solar Mission (JNNSM), an initiative launched by the Indian government to promote solar energy production with an ambition to build 22 gigawatts of solar power generation capacity by year 2022. The plant will receive a guaranteed electricity price for 25 years under the government’s power purchase agreement (PPA) to ensure a sufficient return on investment.

In December 2014 Fortum India announced the grid connectivity for its 10 MW solar PV plant in Madhya Pradesh. The power plant spreads over about 70 acres and it is the first project to be commissioned under the Jawaharlal Nehru National Solar Mission (JNNSM) Phase II Batch I.