Fortum to move 1.3-GW Russian wind portfolio to JV with Bank GPB

Finnish utility Fortum Oyj (HEL:FORTUM) will exit an investment fund it co-owns with Russian nanotechnology company Rusnano and tie up with domestic lender Bank GPB to develop 1.3 GW of wind projects in Russia.

The Finnish company said on Tuesday it has recently formed a joint venture (JV) with the Gazprombank Group bank to implement the schemes. The new entity’s portfolio will come from the Fortum-Rusnano Wind Investment fund, which is equally owned by the two companies and will be dissolved after the transfer of projects.

In a tender held last year, Fortum-Rusnano won capacity supply agreements (CSA) to install wind power capacity of around 430 MW-530 MW per year, or a total of 1.3 GW-1.6 GW. According to the Finnish utility, it holds 1.4 GW of wind projects secured in that tender, with the capacity planned to go online over the 2025-2027 period.

Fortum and Rusnano will continue to explore cooperation opportunities for the joint future development of the project portfolio, Fortum said.

Currently, the Finnish firm and its JVs own roughly 3.4 GW of wind and solar parks and development projects in Russia, including 1.2 GW of operational assets, 0.3 GW of projects under construction and 1.9 GW under development. The portfolio is held through equally-owned partnerships with Bank GPB and sovereign wealth fund RDIF.

Fortum noted it has set aside RUB 15 billion (USD194.6m/EUR 171.7m) in equity for its renewable energy activities in Russia.

(RUB 10 = USD 0.130/EUR 0.114)

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