As announced in early March 2022, Fortum has stopped all new investment projects in Russia and is not providing any new financing to its Russian subsidiaries. In May 2022, we announced that we are preparing a controlled exit from the Russian market, with potential divestments of our Russian operations as the preferred path. We have already decided to replace Russian fuels in our other operating countries.
Fortum in Russia
After the beginning of the Russia-Ukraine war, Fortum has stopped all new investment projects in Russia and is not providing any new financing to its Russian subsidiaries. Fortum is in the process of implementing a controlled exit from the Russian market, with potential divestments of its Russian operations as the preferred path.
Fortum's Russia division
Fortum's Russia division has seven thermal power plants in the Ural region and Western Siberia. They have a total power generation capacity of 4.7 gigawatts (GW) and a heat production capacity of 7.6 GW. Six plants produce electricity and heat for the market, while one produces only electricity.
Together with our joint venture partners, the Fortum Russia division has a portfolio of 3.4 GW of wind and solar plants. The power plants have been built during the ongoing renewable energy development programme in Russia, and a guaranteed price (Capacity Supply Agreement, CSA) is paid for the energy they produce. Over 1 GW is currently in operation; the rest is under construction or development.
Investments in wind and solar power have been made in joint ventures, and each investment decision has been made on a case-by-case basis. Fortum's maximum equity commitment for the development of renewables in Russia is 15 billion rubles.
Our power plants in Russia
Combined heat and power (CHP)
|
Power plant |
Commercial operation started |
Capacity (MW) |
Fuel |
|---|---|---|---|
|
1942, 2014 (upgrade) |
138 (electricity), |
Gas |
|
|
1962, 2015 (upgrade) |
320 (electricity), |
Coal, gas |
|
|
1996, 2006, 2011 |
580 (electricity), |
Gas |
|
|
1930, 2015, 2016 |
534 (electricity), |
Gas |
|
|
1960, 2011 |
660 (electricity), |
Gas |
|
|
1986 |
755 (electricity), |
Gas |
|
|
2013, 2015 |
1,302 (electricity) |
Gas |
Solar power plants
Fortum has three solar power plants in Russia with a total capacity of 35 MW. One 116-MW project, the investment of which has been made in a joint venture, is under construction.
| Power plant | Commercial operation started | Capacity (MW)* |
|---|---|---|
| Bugulchanskaya SPP | 2017 | 15 |
| Grachevskaya SPP | 2017 | 10 |
| Pleshanovskaya SPP | 2017 | 10 |
*All figures in MWac rounded to the nearest Megawatt, Russia Solar in MWp (dc).
Wind farms jointly owned in Russia
Fortum’s and its joint ventures’ portfolio of operational wind power projects currently consists of 14 wind farms with a total capacity of 1,113 MW. Our portfolio also includes approximately 254 MW of wind power projects under construction.
|
Wind farm |
Capacity (MW) |
Commercial operation started |
|---|---|---|
|
Ulyanovsk |
35 |
2018 |
|
Ulyanovsk 2 |
50 |
2019 |
|
Rostov |
350 |
2020 |
|
Kalmykia |
200 |
2020 |
|
Astrakhan |
340 |
2021 |
Salynskaya and Tselinskaya wind farms in Kalmykia region, southern Russia
Fuel purchases from Russia
Due to the war in Ukraine, we are looking for alternatives for the fuel sourced from Russia.
In Finland, we do not buy fossil fuels, pellets or biomass from Russia for our power plants in Espoo and Meri-Pori.
For our Loviisa nuclear power plant in Finland, we currently procure fuel from the Russian fuel company TVEL. The current contract is valid until our current operating licenses end, i.e., 2027 and 2030. The power plant has plenty of fuel in storage, even for a couple of years. On 3 March 2022, we announced the decision to apply for new operating licences for the Loviisa power plant until 2050. A new tendering process for nuclear fuel will be initiated simultaneously.
On 22 November 2022, we announced that we have signed an agreement with Westinghouse Electric Company for the design, licensing, and supply of a new fuel type for the Loviisa power plant. Taking the new fuel into use is a multi-year project requiring regulatory approvals.