Fortum said Wednesday it is starting a wind farm project in Ulyanovsk, Russia with a total capacity of 35 MW. The value of the investment is approximately EUR 65 million.
The wind farm is expected to start production in 2017, serving the city of Ulyanovsk, which is located 680 km south-east of Moscow and has 620,000 residents.
The wind farm is included in the Renewable Projects Competitive Selection, administered by the Russian power market regulator. The goal of the government program is to increase renewable power generation in Russia by using Capacity Supply Agreement (CSA) mechanism. The generation capacity under CSA receives guaranteed payments for 15 years in order to ensure sufficient return on investment.
“Low-emission production has been a key part of Fortum’s strategy for a long time. One of our key targets globally is to increase investments in renewables, above all, hydro, solar and wind power, ” said Alexander Chuvaev, Executive Vice President for Fortum’s Russia segment.