Hexa Climate Acquires Fortum’s Indian Renewables Portfolio: A Strategic Play for Asia’s Clean Energy Future

The renewable energy sector in India is undergoing a seismic shift, and Hexa Climate Solutions has positioned itself at the epicenter of this transformation. By acquiring Finland’s Fortum’s entire renewables portfolio in India—a deal that includes 206 MW of operational assets and a 600 MW pipeline—Hexa has secured a critical foothold in one of the world’s fastest-growing clean energy markets. Backed by its private equity partner I Squared Capital, the company plans to invest $500 million to scale its renewable energy, water, and carbon platforms, signaling a bold bet on India’s transition to a low-carbon economy.

The Deal: Assets, Ambitions, and Uncertainties

The acquisition grants Hexa full ownership of Fortum India Pvt Ltd, including its 40-member team and a pipeline of projects ready for construction. While the exact purchase price remains undisclosed, the strategic value is clear. The 206 MW operational portfolio comprises commercial and industrial (C&I) solar-wind hybrid projects, a segment that analysts highlight as highly attractive due to favorable regulatory policies. These projects allow large energy users to bypass state grids and source power directly from the market, avoiding curtailment risks and benefiting from Time of Day (ToD) tariffs.

Hexa’s $500 million investment—$100 million allocated to completing Fortum’s existing projects and $400 million to expand its capacity to 2.5 GW over 2–3 years—underscores its ambition to dominate the C&I segment. The company aims for a portfolio split of 65% solar and 35% wind, aligning with India’s goal to achieve 500 GW of non-fossil power capacity by 2030, up from the current 165 GW.

Strategic Shifts in Nordic and Emerging Markets

The deal reflects a broader realignment in global energy markets. Fortum, a Nordic utility giant, is retreating from India to focus on its core Nordic markets—a response to geopolitical shocks like the Ukraine war and losses from its Russian assets. This exit contrasts sharply with Hexa’s expansionist strategy, backed by I Squared Capital’s infrastructure expertise. The acquisition also signals a trend of regional players overtaking international firms in emerging markets, as seen in similar moves by firms like AM Green (linked to Greenko Group) and UK Climate Investments.

Risks and Opportunities in India’s Renewable Landscape

India’s renewable sector is booming, but challenges persist. While policy support is robust, execution risks include delays in land acquisition and grid integration. Hexa’s retention of Fortum’s local team mitigates some of these risks, as does its focus on C&I projects, which are less susceptible to grid-related disruptions.

The $500 million investment also positions Hexa to capitalize on ancillary opportunities, such as carbon credits and EV charging infrastructure (Fortum’s GLIDA network, with 850 charging points, is being divested separately). These could provide additional revenue streams as India’s EV market grows and carbon markets mature.

Conclusion: A Pivotal Move in Asia’s Green Transition

Hexa’s acquisition of Fortum’s Indian renewables portfolio is a masterstroke in a sector primed for growth. With India’s renewable capacity needing to triple in the next seven years, Hexa’s $500 million commitment aligns perfectly with the government’s 500 GW target. The strategic acquisition of a proven pipeline and experienced team reduces execution risk, while the focus on the C&I segment—sheltered from grid volatility—enhances project viability.

Moreover, the deal reflects a broader industry trend: as Nordic firms like Fortum retreat to core markets, capital-rich regional players are stepping in to fill the void. With I Squared Capital’s backing and a clear roadmap to 2.5 GW, Hexa is well-positioned to become a cornerstone of India’s clean energy transition. For investors, this acquisition is not just a bet on Hexa’s growth but on India’s relentless march toward a sustainable energy future—a future where the company’s assets could become increasingly valuable as global demand for renewables surges.

The next three years will be critical. If Hexa can execute on its 2.5 GW pipeline and leverage synergies from the Fortum deal, it may well emerge as one of Asia’s most influential renewable energy players—a position that could attract further capital and solidify its role in reshaping India’s energy landscape.