Finland's Fortum to divest 500MW of Indian solar possessions to Actis

• Finnish utility Fortum has secured a deal to unload two solar projects in India totalling 500MW of capability to private equity firm Actis.

The purchase consists of the 250MW Pavagada II project in Karnataka that Fortum won the legal rights to in 2018 and that completed last year. The park has a fixed tariff of INR2.85/ kWh for its output to the grid for 25 years. The second project is the 250MW Rajasthan facility that the energy protected the civil liberties to in 2019 and has a fixed tariff of INR2.48/ kWh for 25 years.

Total factor to consider from the divestment on a financial obligation- and also cash-free basis is anticipated to be around EUR280 million (US$ 333 million).

Fortum, which has actually established and also constructed 680MW of solar in India since 2013, likewise exposed that it has authorized an agreement with Actis that will certainly see the partners target more investments in the nation's PV sector.

For Actis, the offer comes less than a year after the arising market investor completed the acquisition of two projects in India amounting to 400MW from independent power producer Acme.

India installed 2,105 MW of solar in the very first quarter of 2021, taking the country's total cumulative capability to 44.2 GW, according to working as a consultant Bridge to India, which stated implementation in future quarters could be affected by lockdown actions as well as increasing project implementation costs.