Finnish power generation firm Fortum Corporation has acquired a 5 MW photo-voltaic (PV) solar power plant in Rajasthan from an undisclosed seller. The acquisition is made through its Indian subsidiary, Fortum India Pvt Ltd.
The financial details of the transaction were not disclosed but the company said in a release that it is looking to invest some tens of millions of euros – including this acquisition – in developing its photo-voltaic solar competence and operations in India in the short term. The company aims to build a small PV solar portfolio in the country.
The Rajasthan power plant has a capacity of 5.4 MW and its annual production capacity is around 9 gigawatt-hours. It was built as part of the Jawaharlal Nehru National Solar Mission (JNNSM), the Indian government’s initiative for 22 GW of installed solar power generation capacity by 2022.
“Solar power fits well with Fortum’s other CO2-free production and we believe it will play an important role in tomorrow’s low carbon energy system. Solar power is a strong growth segment that will account for an increasing part of power generation in the future. Fast technological development is boosting competitiveness and on best markets, wholesale parity can be expected already within a few years’ time,” said Matti Kaarnakari, MD of Fortum India.
Fortum is an energy company, which focuses on the Nordic and the Baltic countries, Poland and Russia, and is headed by the president and CEO Tapio Kuula. The firm operates and maintains power plants and its main product is the production and distribution of electricity, heat and steam.
(Edited by Sanghamitra Mandal)