Fortum at advanced stage of talks on localizing wind power equipment in Russia

MOSCOW. June 21 (Interfax) - PJSC Fortum is at an advanced stage of negotiations with potential partners on localizing production of equipment for wind power generation in Russia, the power company's deputy CEO for strategy, Dmitry Borovikov told reporters.

"We, of course, plan to fulfill all the obligations we assumed to build new efficient capacity and for this purpose we are holding negotiations with a wide circle of potential partners from friendly jurisdictions in order to fulfill requirements for localization. Negotiations are at an advanced stage," Borovikov said.

The company also plans to bring Russian technology partners into the project for certain components, he said.

"We're seeing an upward trend in the cost of equipment components, it's of a global nature, but fortunately there is a possibility of finding a cost balance by improving the technology and efficiency of certain wind turbines," Borovikov said.

PJSC Fortum, the Russian division of Finnish energy company Fortum, was placed under the management of Russia's Federal Property Agency at the end of April. The company, one of the largest investors in Russian wind energy, abandoned part of its portfolio of renewable energy projects at the end of 2022, saying they would not pay for themselves in the current circumstances. The company said at the time that investments were not made in these projects, and it did not rule out bidding in future tenders for renewable energy projects where this amount might be offered.

At the new capacity supply agreement tender for renewable energy projects in early April, Fortum affiliate Uralenergosbyt LLC won all the wind power capacity that was offered.