Fortum and RUSNANO, a Russian state-owned development company, have
agreed to sign a 50/50 investment partnership in order to secure the
possibility of a Russian Capacity Supply Agreement (CSA) wind portfolio in
Further progress in the matter is still dependent on several factors
such as the Russian prerequisite for domestic production of wind power
generating components as well as auction outcome.
Fortum’s equity stake in the joint venture totals a maximum of RUB 15 billion
(currently approximately EUR 240 million). The amount is invested over time
(within approximately 5 years) as it is subject to positive investment
decisions. Separate investment decisions will be made on a case-by-case basis
for each possible investment. The projects will be financed with the equity
invested to the joint venture and local non-recourse debt.
As earlier communicated at Fortum’s Capital Markets Day held in November 2016,
Fortum’s long-term ambition is to have approximately 500 megawatts (MW) of wind
capacity in Russia. The goal supports Fortum’s strategy to increase the share
of CO2-free generation capacity and is in line with the company’s overall
target of creating a gigawatt-scale wind and solar portfolio. In 2017, Fortum
is commissioning 35 MW of wind capacity in Russia, receiving CSA payments for a
guaranteed period of 15 years.
Sophie Jolly, Vice President, Investor Relations and Financial Communications