04/29/2017

Fortum and RUSNANO establish investment partnership to create possibility to capture CSA wind opportunity in Russia

Fortum and RUSNANO, a Russian state-owned development company, agreed to sign a 50/50 investment partnership in order to secure the possibility of a Russian Capacity Supply Agreement (CSA) wind portfolio in Russia.

Image: Fortum

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.