The project represents half of the 1 GW awarded to the two companies’ 50/50 joint venture, the Wind Energy Development Fund, in Russia’s renewables capacity auction in June.
The firms intend to invest up to RUB30bn ($5m), as well as implementing loan project financing, to build wind power plants in Russia. à‚
The windfarm is planned to come online in 2019 and Denmark’s Vestas has won its first turbine supply agreement, for 14 turbines. In order to comply with Russia’s local content requirements, in September Vestas signed an agreement with representatives of the southwestern Ulyanovsk region to set up a $17.5m blade manufacturing hub there.
According to the Ulyanovsk government, the blade facility is planned to be functioning by mid-2019 and to create around 200 jobs.
For its projects, the Fortum-Rusnano partnership is aiming for a yearly increase in the level of local content in equipment manufacturing, with the goal of using 65 per cent Russian-made equipment by 2019. à‚ à‚
Longer term, Fortum aims to develop a 5 GW wind portfolio in Russia. The company already operates as a power and heat utility in Western Siberia and the Urals.à‚