Fortum says it is not exiting the Indian solar market

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Finnish power utility Fortum has issued a press release to reaffirm its commitment to the Indian solar market, after local newspaper Livemint had reported that the company hired Barclays to sell a stake in its PV plant portofolio in the country.

“We remain committed to develop solar power and explore new opportunities and this has not changed,” says Sanjay Aggarwal, Managing Director, Fortum India Pvt. Ltd. The company also reminded that in April it sought to allocate a portion of its planned growth capital in the range of €200 to €400 million to solar projects in India, and that it was considering possible partnerships or other forms of cooperation, “which would in the long-term create a more asset-light structure.”

The company currently owns and operates three PV plants totaling 85 MW in the states of Rajasthan and Madhya Pradesh.

A 70 MW solar facility, located at the Bhadla solar park in Rajasthan, northwestern India, is selling power to local utility National Thermal Power Corporation Limited (NTPC) under a 25-year PPA. The company also owns and operates a 10 MW solar plant in Kapeli, in the state of Madhya Pradesh, and another 5.4 MW solar facility in Rajasthan. Both plants were built under Jawaharlal Nehru National Solar Mission (JNNSM) Phase II.

Fortum is also building a 100 MW project in Karnataka. The plant is poised to sell power to the local grid under a 25-year PPA, and is expected to be finalized in the second half of 2017.

Overall, Fortum is targeting a GW-scale wind and solar portfolio on a global scale.

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