Fortum Exits Indian Solar Market, Evaluates Remaining Operations

It has sold its solar assets to Gentari Renewables India


Finland-based energy company Fortum said it is exiting the Indian solar power market after signing an agreement to sell its remaining 43.75% stake in a 185 MW solar portfolio to Gentari Renewables India, a subsidiary of Malaysia-based clean energy firm Gentari.

The portfolio consists of four solar projects with a total capacity of 185 MW – a 5 MW Amrit project and 70 MW Bhadla project in Rajasthan, 10 MW Kapeli project in Madhya Pradesh, and a 100 MW Pavagada plant in Karnataka.

The other owners, UK Climate Investments Lakeside, with a 40% stake, and a fund managed by Evli Fund Management, with a 16.25% stake, are also divesting their full ownership interests.

Fortum first entered the Indian market in 2012, focusing primarily on developing renewable energy projects. However, the company has now decided to limit its exposure in India as part of its strategy to concentrate on the Nordic region, including of Finland, Sweden, Norway, Denmark, and the Baltics.

It will record a profit from this latest divestment when the transaction closes in the second quarter of 2024.

Fortum still retains some electric vehicle charging services and a renewables development portfolio with projects at various stages in India. But the company said it is evaluating alternatives for these remaining Indian operations totalling around €30 million (~$32 million) in net assets and guarantees.

Fortum stated it will not make any further commitments in India going forward.

In 2021, Fortum signed an agreement to sell the 250 MW Pavagada II and the 250 MW Rajasthan solar projects in India to Actis, a global infrastructure investment firm.

Meanwhile, REC Solar Holdings, a 100% step-down subsidiary of Reliance Industries, earlier this year entered into a share purchase agreement with Norway-based Elkem to sell a 100% equity stake in REC Solar Norway for an aggregate cash consideration of ₹22 million.