We have announced plans to further expand our wind and solar power production in Russia. The plans are in line with Fortum's overall target of creating a multi-gigawatt wind and solar portfolio.
In June 2017, the Fortum-Rusnano wind investment fund won the right to build 1,000 MW of wind capacity in a CSA auction. In June 2018, the fund won the right to build a further 823 MW. The wind parks will receive a guaranteed CSA price corresponding to approximately RUB 7,000-8,000 per MWh for a period of 15 years. In June 2018, Fortum also won the right to build 110 MW of solar capacity.
The Fortum-Rusnano wind investment fund is a 50/50 owned investment partnership established in 2017 in order to secure the possibility of a Russian Capacity Supply Agreement (CSA) wind portfolio in Russia.
The investment decisions related to the renewable capacities won by Fortum and the Fortum-Rusnano wind investment fund in 2017 and 2018 will be made on a case-by-case basis.
In January 2018 we added 35 MW of wind power to the Russian power market when our Ulyanovsk wind farm was listed in the registry of capacity. This power plant is Russia’s first whole sale market wind generation facility.
In January 2019 the Fortum-Rusnano wind investment fund started operation of the 50-MW wind power plant in Ulyanovsk. The plant is the first to start operation of the total 1,823 MW awarded to the fund in the Russian wind auction in 2017 and 2018.
Ongoing wind power projects in Russia
In October 2019, the investment fund launched the construction of 300 MW of wind power in Rostov region in Southern Russia. Power production and capacity supply of the three wind parks in the region is expected to start during the first half of 2020.
In November 2019, the fund announced its next investment decision for a 200-MW wind power project in Kalmykia in Southern Russia. The wind farms in Kalmykia are expected to start production during the fourth quarter of 2020.
In November 2017 we signed an agreement to acquire three solar power companies from Hevel Group, Russia's largest integrated solar power company. The transaction was closed in December 2017. All three power plants are operational with a total capacity of 35 MW. The plants were commissioned in 2016 and 2017. Hevel Group will provide operation and maintenance services for all three power plants.
In June 2018 the Fortum won the right to build 110 MW of solar power to be commissioned during 2021-2022. In addition, in June 2019 we won the right to build 5.6 megawatt (MW) of solar capacity in a Russian Capacity Supply Agreement (CSA) auction. The power plant is to be commissioned during the year 2022.