- Fortum and TPREL have won the rights to develop a 250 MW solar power project each from KREDL
- The projects will be developed in Pavagada Solar Park in Tumkur district in Karnataka
- Power from the plants will be sold for a fixed tariff of 2.85 INR ($0.042) per kWh for a period of 25 years
- Fortum expects capex of €120 million ($140 million) for its 250 MW capacity
Finnish power company Fortum Corporation has won a contract to develop a 250 MW solar power plant in Pavagada Solar Park in Tumkur district of Karnataka, India.
According to Mercom India Research, this is part of the 650 MW tender that was re-tendered in April 2018 by Karnataka Renewable Energy Development Ltd. (KREDL) (see KREDL Re-Tenders 650 MW PV). Tata Power Renewable Energy Limited (TPREL) also won 250 MW in the auction.
Fortum says its project is scheduled for commissioning in Q3/2019. It will supply power for a fixed tariff of 2.85 INR ($0.042) per kWh for a period of 25 years.
The Finnish company expects capital expenditures of €120 million ($140 million) on the project. This plant is in addition to another 100 MW Fortum project in Pavagada Solar Park that is already operational.
Recently, Fortum announced it was selling a stake in 185 MW PV capacity in India to UK Climate Investments and Finnish investment service company Elite Alfred Berg. It has retained a 46% share in the project capacity that’s spread across Rajasthan, Madhya Pradesh and Karnataka. It plans to use the money for further investments and develop more such plants in the country (see Fortum Sells 54% Stake In 185 MW PV In India).
Fortum’s total operational solar power capacity comprises 185 MW in India and 35 MW in Russia.