Fortum has made a final investment decision on the 75MW Solberg wind park project in Sweden with the total cost estimated at €100m.
The company expects construction work to begin in the summer, with completion scheduled for early 2018.
Sweden-based Arise will manage the construction process, while Denmark’s Vestas will deliver the 22 wind turbines that will be built at the site.
After completion, the facility is estimated to generate about 250 GWh of electricity per year, enogh to power 50,000 homes.
Skelleftea Kraft has the right to acquire a 50% stake in the project, subject to decision by its municipal owner and authority approvals.
It is expected to decided on whether it would buy the stake during the second quarter of this year.
Fortum senior vice president M&A and solar & wind development Kari Kautinen said: "Sweden is a natural choice for Fortum in wind power.
"It is one of our largest home markets and there we have the majority of our hydro capacity that is crucial in balancing the variability in wind power production.
"We have had good cooperation with Skellefteå Kraft in the Blaiken wind power park, and we are looking forward to continue our cooperation also in Solberg."
The project is a key step in the implementation of Fortum’s newly unveiled strategy and the plans to increase wind and solar power capacity.
The company intends to increase in wind and solar businesses by developing new projects and selective acquisitions.