Finnish Fortum is expanding its presence in the market of renewable power generation in the Russian Federation through the purchase of three plants of 35 MW from “Hevel” (joint venture of “Renova” Viktor Vekselberg and RUSNANO). Before the green portfolio of the company consisted only of the wind energy. The cost of the transaction, according to analysts, could reach 5.5 to 7 billion rubles.
“Hevel” and PJSC “Fortum” (the Russian division of the Finnish Fortum) signed an agreement for the sale of three solar power plants of 35 MW — Plehanovsky (10 MW) and Grachevskoe SES (10 MW) in the Orenburg region and Bugaichenko SES (15 MW) in Bashkortostan. The transaction is expected to be completed by the end of the year, the company said.
In fact, “Hevel” sells “Fortum” the stations along with the rights to receive increased payments from the wholesale energy market contracts for the supply of power (PDM; return on investment is in 15 years from the date the stations launched operations) from renewable energy sources (RES). All three SES are already in operation, their operational service will continue to engage “Hevel”.
“For us this deal is a timely and logical step in our long-term strategy. Sale of 35 MW will free up additional funds for the implementation of tasks, technology development, construction of new generation and implementation of export activity”,— explained the General Director of “Hevel” Igor Shakhrai. Now the company need cash to consolidate its assets in the amount of 1 GW on the basis of “Hevel”. The company plans to increase the portfolio due to the inclusion of assets of LLC “Green Energy Rus” (also controlled by “Renova”). “Green Energy”, in turn, has already been transferred to the projects of SES 195 MW, previously owned by “Solar Energy” (beneficiary is believe to be the Minister for “Open government” Mikhail Abyzov). Also “Hevel” needs to invest in the expansion of its plant for the production of solar modules in Novocheboksarsk with 160 MW to 250 MW per year by the end of 2018.
The cost of stations can be from 5.5 billion to 7 billion rubles. Already built SES is an interesting object for investments – operational costs are very low and there is a guaranteed amount of payments under capacity supply agreements in the amount of about 1 billion RUB per year”.
In fact, the transaction between “Hevel” and “Fortum” could be the first example of buying already built renewable energy assets in renewable energy market of the Russian Federation, before that such deals were made only for the completion of problem stations in the PDM. In order to enter the market of solar generation, investors also need to comply with strict requirements to ensure the level of localization of produced RES equipment (must be 70% – if the localization is less, then the investor receives payments for the power with reduction factor).
This year, a joint Fund by Fortum and “Rosnano” — “Fortum Energy” — won 1 GW of wind power project in the competition for the PDM RES. In the first quarter of 2018 Fortum plans to introduce its first wind farm in the Ulyanovsk region (35 MW).
“Hevel” still owns two SES in Bashkiria — Isyangulovskiy capacity of 9 MW in Zianchurinskiy area and Buribaevsky 20 MW in Haybullinsky region of the Republic. The company announced that it intends to increase the number in the region to eight.