The bids have been auctioned for projects to be operational during the years between 2018 and 2022. The projects will be covered under capacity supply agreements (CSA) for a period of 15 years.
Around 1,900MW for the years 2018-2022 has been provided under the Russian wind auctions held from 29 May to 9 June 2017, while the 2,491MW is the total capacity under the projects.
In November 2016, Russian state-owned development firm Rusnano and Fortum have entered into a preliminary cooperation agreement to assess the possibility of creating a wind generation fleet of several hundred megawatts over several years.
In April this year, Fortum and Rusnano signed a 50/50 investment partnership to secure the possibility of a CSA wind portfolio in Russia. Fortum’s equity stake in the joint venture totals a maximum of RUB15bn.
Under the deal, the funding will be invested within five years, while the separate investment decisions will be taken on a case-by-case basis for each possible investment.
According to Fortum, the projects will be financed with the equity invested to the joint venture and local non-recourse debt.
The projects are in line with Fortum's strategy to increase the share of CO2-free generation capacity and overall target of creating a gigawatt-scale wind and solar portfolio.
The company is planning to commission 35MW of wind capacity in Russia this year, which will enable to securing CSA payments for a guaranteed period of 15 years.
