Finland’s Fortum to sell stake in Indian solar assets

• 6 years ago (2017-10-23)
• David Flin

Asia 847 Solar 243

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Fortum of Finland has hired Barclays Bank to sell a stake in its operational solar power projects in India. The move is representative of growing consolidation in India’s clean energy sector. It comes at a time when financing at the lowest cost is the key to success given the record low solar and wind power tariffs. Fortum plans to invest around €400 million in India’s solar sector.

A source said: “Fortum is looking at growth capital, and hence this mandate to Barclays.” Fortum is seeking long-term capital after India witnessed record low solar tariffs of Rs2.44 per kWh ($0.0375/kWh) in May, which rose slightly to Rs2.65/kWh in September. These tariffs are lower than the average rate for coal-fired plants, at Rs3.20/kWh.