Fortum to sell 500 MW of Indian solar to Actis

Finnish utility Fortum Oyj (HEL:FORTUM) said Tuesday it has agreed to sell two solar parks in India totalling 500 MW to UK-based emerging markets investment firm Actis.

The companies have also inked a comprehensive agreement for additional investments in solar power plants in the Asian country.

“We can utilise the strong competencies Fortum has gained over the years in solar development and construction, while utilising the financial strength and track record of Actis to realise the investment potential," said Per Langer, executive vice president of Fortum’s City Solutions division.

Fortum is selling the 250-MW Pavagada II and the 250-MW Rajasthan solar facilities for an expected total consideration on a debt and cash-free basis of about EUR 280 million (USD 334m). The disposal is expected to lead to a EUR-20-million gain in the City Solutions segment’s results, which will be recorded gradually as the transaction will be completed in three tranches over the second half of 2021 and the first half of 2022.

Fortum has developed and built 680 MW of solar capacity in India since 2013, most of which has been divested in line with a build-operate-transfer business model.

(EUR 1.0 = USD 1.191)

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