The 90MW Kalax wind power project of Fortum to be located in Närpes, Finland, has been approved for the national renewables scheme.
Fortum stated that under the scheme, the wind farm will receive €2.87/per MWh if the market price for power is below €30 per MWh. The Kalax wind farm is expected to generate nearly 300GWh of clean power annually.
The Finnish national renewables scheme was opened up for a total of 1,400GWh of annual generation. The projects approved under the scheme are to be commissioned within three years of receiving approval. Fortum is yet to take investment decision for the Kalax wind farm.
Fortum wind generation vice president Joonas Rauramo said: “The granted premium is very low, but will offer some additional compensation on top of the spot price, should market prices be very low.
“It is time for wind power to become a part of the power market on the same basis as other production forms, without separate support. The support scheme is supposed to be a temporary solution and new support schemes are not needed.”
Earlier this month, the company had won the right to build a 250MW solar project in the Indian state of Rajasthan. Fortum was selected by Solar Energy Corporation of India (SECI).
The solar plant is expected to be commissioned in the fourth quarter of next year. The company secured a fixed tariff of INR 2.48 ($0.036)/kWh for 25 years.
Presently, Fortum has a solar portfolio of 185MW in India and 35MW in Russia.
The company, in a statement, said: “Based on its strategy, Fortum will continue to build on its long-standing expertise to grow in CO2-free power generation. In solar and wind, the ambition is to increase the solar and wind portfolio to a multi-gigawatt scale.
“Fortum’s business model in renewables consists of development, construction, and asset management of solar and wind assets. Fortum utilises partnerships and other forms of co-operation to maintain a more asset-light structure.”