A growing presence in Russia’s wind and solar power markets
Renewable energy plays a vital role in the change towards a cleaner world, and solar and wind in particular offer huge opportunities for growth. In Russia, our wind and solar power projects are helping to reshape the country’s energy system.
One of Fortum’s overall targets is to create a gigawatt-scale portfolio in solar and wind power, and as part of this, we have increased our renewable capacity in Russia.
We took a major step in late 2017 with the acquisition of the Bugulchanskaya, Grachevskaya, and Pleshanovskaya solar power plants, when we gained 35 MW of solar power capacity. Altogether, the three plants are capable of fulfilling the electricity needs of about 7,000 households.
Russia’s Ministry of Energy recently reported that more renewable capacity was put into operation in 2017 than in the two previous years combined, with solar power plants accounting for the bulk of the 140 MW of newly commissioned capacity. The remaining 35 MW came from Fortum’s new wind farm in Ulyanovsk, which was listed in Russia’s registry of capacity in January 2018.
The first wholesale market wind generation facility in the country, our Ulyanovsk wind farm is located some 680 km south-east of Moscow, in an area that is home to 620,000 residents.
The facility adds 35 MW of capacity to the Russian wind power market, and has an expected annual production of 85 million kilowatt hours (kWh). Taking into account that 1 MW of wind power offsets about 2,600 tons of carbon dioxide emissions each year, this represents a substantial gain in the fight against climate change.
The unique experience we attained from the Ulyanovsk project is invaluable as we move forward in implementing our strategy in the market. In June 2017, Fortum’s investment fund with the nanotechnology company Rusnano was awarded the right to build 1,000 MW of wind capacity in a CSA auction and will receive a guaranteed CSA price corresponding to approximately RUB 7,000-9,000 per MWh for a period of 15 years. In June 2018, the fund won the right to build a further 823 MW. In June 2018, Fortum also won the right to build 110 MW of solar capacity. These wins will enable us to continue to further expand renewable energy production in the country.
Increasing the generation of carbon-neutral energy is among the most important ways to control climate change. Through our growing presence in Russia’s wind and solar power markets, we can facilitate the country’s transformation towards a low-emission energy system and drive the change towards a cleaner world.