Finland-based Fortum has acquired a 5.4MW solar power plant in the state of Rajasthan, north-western India.

Constructed as part of the Jawaharlal Nehru National Solar Mission (JNNSM), the Indian government's initiative for 22GW of installed solar power generation capacity by year 2022, the power plant's annual production is approximately 9GWh and it has been fully operational for one year. The plant will receive a higher, guaranteed electricity price for 25 years, said the company.

Fortum’s short-term ambition is to build a small PV portfolio in order to gain experiences in different solar technologies and operating in the Indian power market.

"Solar power fits well with Fortum's other CO2-free production and we believe it will play an important role in tomorrow's low carbon energy system," said Matti Kaarnakari, managing director, Fortum India Pvt. Ltd.

"Solar power is a strong growth segment that will account for an increasing part of power generation in the future. Fast technological development is boosting competitiveness and on best markets, wholesale parity can be expected already within a few years' time.

"India is one of the most interesting countries for solar power development. Apart from the naturally favourable geographic location, India has ambitious plans for solar power on both national and state levels," Kaarnakari said.

In the short term, Fortum is looking to invest some tens of millions of euros - including this acquisition - in developing its PV solar competence and operations in India.

In April it was reported that Rajasthan had reached 510.25MW at the end of the 2012-13 fiscal year.

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