Finland’s Fortum is to acquire a 12.5% stake in Russia’s St. Petersburg Generating Co for approximately €120 million.

The St. Petersburg GenCo generates approximately 12 TWh of power and 25 TWh of heat annually and was formed when the generation assets of the regional power company Lenenergo were unbundled and incorporated as part of the Russian power reform.

As part of the reform, the generation assets of Lenenergo and two other regional power companies in north-west Russia, Karelenergo and Kolenergo, are to be merged into a Territorial Generation Company, TGC-1. Once concluded, this transaction will increase Fortum’s ownership in TGC-1 from the current 18% to slightly over 25%.

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