Fortum divests stake in 500 MW solar projects in India to Actis

The projects in which Fortum is divesting are two solar plants of 250 MW each located in Karnataka and Rajasthan, respectively.

European energy firm Fortum has signed an agreement to divest its stake in 500 megawatt (MW) of solar projects located in India to global infrastructure investment firm Actis. The cash-free transaction is expected to reduce Fortum’s debt by about Rs 2,482 crore (€280 million). The projects in which Fortum is divesting are two solar plants of 250 MW each located in Karnataka and Rajasthan, respectively. “The parties have also signed a comprehensive agreement targeting further investments in solar power plants in India,” the statement from Fortum said.

Fortum has developed 680 MW solar projects in India since 2013 and it has sold majority of its shares in these plants, in line with the company’s build-operate-transfer business model. “This is an important step for Actis as we further strengthen our presence in India building on our achievements to date,” Mikael Karlsson, partner and head of energy infrastructure at Actis said.

In August 2014, Actis committed $280 million to establish a wholly-owned Indian renewable energy platform Ostro Energy. In 2018, Actis announced the sale of Ostro Energy to ReNew Power. In 2020, Actis completed its acquisition of two solar projects located in Andhra Pradesh and Madhya Pradesh totalling 400 MW from Acme Solar. Currently Sprng Energy, backed by Actis, has 1,064 MW solar projects and 497.5 MW wind power projects in the country, out of which 350 MW wind and 672.5 MW solar are already operational.