Fortum: Fortum acquires 35 MW of solar power capacity in Russia

FORTUM CORPORATION INVESTOR NEWS 30 NOVEMBER 2017 14.00 EET

Fortum has today signed an agreement to acquire three solar power companies
from Hevel Group, Russia's largest integrated solar power company. The
transaction is expected to be closed by the end of 2017. The parties have
agreed not to disclose the purchase price. 

The Pleshanovskaya (10 MW) and Grachevskaya (10 MW) solar power plants are
located in the Orenburg region and the Bugulchanskaya (15 MW) solar power plant
in the Republic of Bashkortostan. All three power plants are operational and
will receive Capacity Supply Agreement (CSA) payments for approximately 15
years after commissioning at an average CSA price corresponding to
approximately EUR 430/MWh. The plants were commissioned in 2016 and 2017. Hevel
Group will provide operation and maintenance services for all three power
plants. 

Fortum currently operates 85 MW of solar capacity in India and an additional
100 MW is estimated to be commissioned during 2017. 

Based on Fortum's strategy the target is to create a gigawatt-scale solar and
wind portfolio. Fortum's ambition is to make selective investments in
renewables building on its competences and technical know-how. Fortum's
long-term ambition is to have approximately 500 MW of renewable capacity in
Russia. 

In 2017, the total volume of the solar on the Russian wholesale market amounts
to 224 MW. The largest solar power plants are located in the Orenburg region,
and the republics of Bashkortostan and Altai. Based on the results of the
capacity selection auction for renewables (RES), it is expected that an
additional 1.5 GW of solar power will be added to the wholesale market in
2018-2023. 

Fortum Corporation
Ingela Ulfves, Vice President Investor Relations and Financial Communications

Further information:
Investor Relations & Financial Communications, Måns Holmberg, tel. [phone]
1518, Rauno Tiihonen, tel. [phone] 

Distribution:
Nasdaq Helsinki
Key media
www.fortum.com

Fortum
Fortum is a leading clean-energy company that provides its customers with
electricity, heating and cooling as well as smart solutions to improve resource
efficiency. We want to engage our customers and society to join the change for
a cleaner world. We employ some 9,000 professionals in the Nordic and Baltic
countries, Russia, Poland and India, and 62% of our electricity generation is
CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on
Nasdaq Helsinki. www.fortum.com