More than 90 per cent of Fortum’s energy production in Russia is based on natural gas. Fortum has eight thermal power plants in Russia, the majority of them are natural gas-fired combined heat and power (CHP) plants. Fortum’s capacity is the most modern and efficient in the markets. The power plants are located in the Tyumen and Khanty-Mansiysk areas of western Siberia and in the Chelyabinsk area of the Urals.
Fortum’s development focus in Russia is on improving energy efficiency. Our new plant units in Russia use gas-turbine technology representing the best available technology in gas combustion. With modernisation of the plants, the emissions per unit of energy produced have decreased by about one fifth.
Additionally, Fortum has a 29.5% holding in TGC-1, which owns and operates thermal and hydropower in north-west Russia and a heat distribution network in St. Petersburg.
Uniper, Fortum’s subsidiary in which its ownership is approx. 75 per cent, also operates in Russia. Uniper’s Moscow Exchange-listed subsidiary Unipro has five power plants around the country.
Energy production in Russia is governed by state decisions. The state has long guided energy production towards boosting energy efficiency – without taking a position on gas and coal as a fuel. Now the state has started to strongly support investments in wind and solar energy.
Fortum’s investments in Russia in recent years have focused on developing renewable energy. Together with our local cooperation partner Rusnano, we currently have a total of 430 MW solar and wind power in Russia – in addition to the over 1,470 MW under development.
We aim to increase the wind and solar portfolio to a multi-gigawatt scale. The Fortum and Rusnano wind power investment fund commitments are among the most ambitious renewable energy projects in Russia. In the 2017 and 2018 renewable energy auctions in Russia, the investment fund won the right to build 1,823 MW of wind capacity. We expect the wind farms to be commissioned before 2024.