Fortum acquires 35 MW of solar power capacity in Russia

FORTUM CORPORATION INVESTOR NEWS 30 NOVEMBER 2017 14.00 EET

Fortum has today signed an agreement to acquire three solar power companies

from Hevel Group, Russia's largest integrated solar power company. The

transaction is expected to be closed by the end of 2017. The parties have

agreed not to disclose the purchase price.



The Pleshanovskaya (10 MW) and Grachevskaya (10 MW) solar power plants are

located in the Orenburg region and the Bugulchanskaya (15 MW) solar power plant

in the Republic of Bashkortostan. All three power plants are operational and

will receive Capacity Supply Agreement (CSA) payments for approximately 15

years after commissioning at an average CSA price corresponding to

approximately EUR 430/MWh. The plants were commissioned in 2016 and 2017. Hevel

Group will provide operation and maintenance services for all three power

plants.



Fortum currently operates 85 MW of solar capacity in India and an additional

100 MW is estimated to be commissioned during 2017.



Based on Fortum's strategy the target is to create a gigawatt-scale solar and

wind portfolio. Fortum's ambition is to make selective investments in

renewables building on its competences and technical know-how. Fortum's

long-term ambition is to have approximately 500 MW of renewable capacity in

Russia.



In 2017, the total volume of the solar on the Russian wholesale market amounts

to 224 MW. The largest solar power plants are located in the Orenburg region,

and the republics of Bashkortostan and Altai. Based on the results of the

capacity selection auction for renewables (RES), it is expected that an

additional 1.5 GW of solar power will be added to the wholesale market in

2018-2023.



Fortum Corporation

Ingela Ulfves, Vice President Investor Relations and Financial Communications



Further information:

Investor Relations & Financial Communications, Måns Holmberg, tel. +358 44 518

1518, Rauno Tiihonen, tel. +358 10 453 6150



Distribution:

Nasdaq Helsinki

Key media

www.fortum.com



Fortum

Fortum is a leading clean-energy company that provides its customers with

electricity, heating and cooling as well as smart solutions to improve resource

efficiency. We want to engage our customers and society to join the change for

a cleaner world. We employ some 9,000 professionals in the Nordic and Baltic

countries, Russia, Poland and India, and 62% of our electricity generation is

CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on

Nasdaq Helsinki. www.fortum.com