Fortum’s 90-MW wind power project in Närpes, Finland approved for renewables scheme

FORTUM CORPORATION INVESTOR NEWS 25 MARCH 2019 AT 15.50.00 EET

Fortum’s Kalax wind power project in Närpes, Finland has been approved for the Finnish national renewables scheme. The effect of the wind power park is expected to be approximately 90 megawatt (MW) and the annual power generation approximately 300 gigawatt hours (GWh). The Kalax wind park will receive a support of EUR 2.87 per megawatt hour (MWh) if the market price for power is below EUR 30 per MWh. The renewables scheme was opened up for a total of 1,400 GWh of annual generation. The approved projects are to be commissioned within three years from approval. The Kalax project still requires an investment decision by Fortum.

The cost of wind power has developed favourably over the recent years and Fortum is developing projects in the Nordics that are to be realised without public support schemes.

”The granted premium is very low, but will offer some additional compensation on top of the spot price, should market prices be very low. It is time for wind power to become a part of the power market on the same basis as other production forms, without separate support. The support scheme is supposed to be a temporary solution and new support schemes are not needed”, says Joonas Rauramo, Vice President Wind Generation at Fortum.

Based on its strategy, Fortum will continue to build on its long-standing expertise to grow in CO2-free power generation. In solar and wind, the ambition is to increase the solar and wind portfolio to a multi-gigawatt scale. Fortum's business model in renewables consists of development, construction, and asset management of solar and wind assets. Fortum utilises partnerships and other forms of co-operation to maintain a more asset-light structure.

Fortum Corporation

Ingela Ulfves, VP, IR and Financial Communications

Further information:

Mikko Iso-Tryykari, Development Manager, Wind, tel. +358 50 453 2650

Ingela Ulfves, VP, IR and Financial Communications, tel. +358 40 515 1531

Rauno Tiihonen, IR Manager, tel. +358 10 453 6150

Måns Holmberg, Manager, IR and Financial Communications, tel. +358 44 518 1518

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 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. In 2018, our sales were EUR 5.2 billion and 57% of our electricity generation was CO2 free. Fortum's share is listed on Nasdaq Helsinki. www.fortum.com