Fortum Sells Remaining Stake in Indian Solar Portfolio to Gentari Renewables India

Fortum has announced the sale of its remaining 43.75 percent share in its Indian solar power portfolio to Gentari Renewables India Pte. Ltd., a subsidiary of Gentari Sdn. Bhd., a clean energy solutions provider. 

The portfolio consists of four solar power plants in India with a combined capacity of 185 MW: Amrit (5 MW), Kapeli (10 MW), Bhadla (70 MW), and Pavagada (100 MW).

The transaction also involves the sale of ownership stakes held by other investors, including UK Climate Investments Lakeside Limited (40 percent) and a fund managed by Evli Fund Management Ltd (16.25 percent). Fortum initially sold 56.25 percent of the company's shares in 2018–2019.

Upon the closing of the transaction, expected in the second quarter of 2024, Fortum anticipates recording profits from the divestment.

Since entering the Indian market in 2012, Fortum has primarily focused on developing renewables in the region. Following this divestment, Fortum will retain its EV charging services and a renewables development portfolio consisting of projects in various stages of development in India. 

However, in alignment with its Nordic strategy, Fortum aims to reduce its exposure in India and is exploring alternatives for its remaining operations. The company has stated that it will not undertake any further commitments in India.

The remaining net assets, including guarantees, amount to approximately EUR 30 million.