Fortum’s strategic journey 2013-2020

2013 – 2014: Divestment of distribution networks

The strategic assessment of future alternatives for our electricity distribution business started in 2013. After thorough consideration, we concluded that divesting the electricity distribution business was the best solution for the business and its customers, as well as for our shareholders and our other businesses. We viewed a focus on the production and sales of electricity and heat as best for improving our long-term value creation. In March 2014, we completed the divestment of our Finnish electricity distribution business.

2016: Acquisition of Recycling and Waste Solutions

2016 we went beyond just clean energy production and expressed our commitment to fuel and resource efficiency and to how we enable to make sustainable choices. The acquisition of the circular economy company Ekokem in May 2016 played an important role in this evolution.

As part of Fortum Group, the former Ekokem formed the foundation for the Recycling and Waste business. With sustainable city solutions as our strategic priority, we aim to use our expertise and experience to help cities and industrial customers solve challenges sustainably and to support the building of a circular economy.

2017: Uniper stake acquisition

In 2017 we took many important steps in our strategy implementation. We invested in solar and wind power production and restructured our ownership in Hafslund, which increased our presence in the Nordic heat and electricity retail market, especially in Norway. Towards the end of the year, we announced our investment in Uniper.

The investment in Uniper was a significant step, enabling us to take an active role in driving a successful and cost-efficient energy transition. We saw plenty of opportunities for cooperation with Uniper to add value for all stakeholders.

Fortum and Uniper are together Europe’s third-largest producer of carbon-free electricity. Uniper is a successful, international energy provider and trader, and, as our strategic subsidiary, Uniper is a great fit with Fortum’s other operations.

2018-2019: Ensure value creation from investments and operational excellence

In 2018-2019, we continued our determined efforts to implement Fortum’s strategy. We reached an agreement on increasing our shareholding in Uniper, we focused on operational excellence in all our operations, we continued building solar and wind power, we reassessed strategic alternatives of parts of our district heating business, and we improved our financial results substantially.

2019-2020: Grow in solar and wind

In 2019, we commissioned the 250-MW Pavagada 2 solar power plant in India and started the construction of the 250-MW Rajasthan solar power plant.

In Russia, we have wind and solar portfolio of around 2 GW, most of which is owned by the joint venture established with Rusnano. In 2019, we agreed to expand the shareholder base of the Nordic wind portfolio, keeping a 20% ownership stake to manage the construction and operational activities of the wind power plants.