FORTUM CORPORATION STOCK EXCHANGE RELEASE 12 April 2016 8.55 EEST
Fortum's solar strategy targets a wider geographic scope than the company's
current business portfolio, and hence will entail entering selected new
locations globally. Fortum will carefully select a few geographies with
excellent solar conditions. With technologies rapidly maturing, utility
competences are becoming increasingly important in solar business, and
expansion in solar fits very well Fortum's vision to be the forerunner in clean
energy. Overall, Fortum is targeting a gigawatt-scale wind and solar portfolio.
India is the first country Fortum has decided to enter, as the country offers
one of the best solar resources and a sound government support for the
development of the solar sector. The country provides a good platform for
Fortum to further develop its business in solar also elsewhere.
Fortum seeks to allocate of its planned growth capital in the range of EUR
200–400 million in solar projects in India.
Some large-scale greenfield development will be targeted to enable economies of
scale. In addition, the company will consider seeking possible partnerships or
other forms of cooperation, which would on long-term create a more asset-light
structure. Projects in India are to be selected from various central, state and
public sectors undertaking (PSU) schemes, which would guarantee a long-term
power purchase agreement (PPA), taking into account Fortum's Group financial
Fortum currently has 15 megawatts (MW) of solar capacity in India. In January
2016, Fortum won a reverse auction for a 70 MW project with a fixed tariff for
25 years. In addition, on 12 April 2016, Fortum decided to bid for an
additional 100 MWs in India, with a fixed tariff for 25 years.
Vice President, Investor Relations and Financial Communications
Kari Kautinen, Senior Vice President, M&A and Solar & Wind Development tel.
+358 10 45 32174
Investors, analysts and financial media:
Sophie Jolly, Vice President, Investor Relations & Financial Communications
tel. +358 10 45 32552
Pauliina Vuosio, Corporate Press Officer, tel. +358 50 453 2383
Fortum's vision is to be the forerunner in clean energy. We provide our
customers with electricity, heat and cooling as well as other energy solutions
that improve present and future life. Already 64% of our electricity generation
is CO2 free. Our main markets are the Nordic and the Baltic countries, Russia,
Poland and India. In 2015, we employed some 8,000 energy sector professionals,
and our sales were EUR 3.5 billion. Fortum's share is listed on Nasdaq