Fortum has reached an agreement to divest its remaining stake in its Indian solar power portfolio to Gentari Renewables India, a subsidiary of Gentari, a leading provider of clean energy solutions.
The deal encompasses Fortum's 43.75% share in a portfolio comprising four solar power plants across India, boasting a combined capacity of 185MW. These plants include Amrit (5MW), Kapeli (10MW), Bhadla (70MW), and Pavagada (100MW).
Joining Fortum in this transaction are the other owners: UK Climate Investments Lakeside Limited (40%) and a fund managed by Evli Fund Management Ltd (16.25%), who are also divesting their ownership stakes. Fortum had previously sold 56.25% of the company in 2018–2019.
Fortum anticipates recording profits from the divestment upon the closing of the transaction, slated for the second quarter of 2024.
Having entered the Indian market in 2012, Fortum's focus has predominantly been on the development of renewable energy projects. However, aligning with its Nordic strategy, the company aims to reduce its exposure in India and explore alternative options for its remaining operations, refraining from making further commitments in the region.
The net assets remaining after the divestment, including guarantees, are estimated to be approximately €30m, according to Fortum.
