Saudi ACWA Power signed an implementation agreement with the Ministry of Energy of Azerbaijan for developing, building and operating a 240 MW wind power project.
The power purchase agreement (PPA) of the project spans over a period of 20 years on a Build Own Operate (BOO) basis.
The project will bolster the government’s efforts in diversifying energy by leveraging the country’s rich renewable energy resources and strengthening energy security, as Azerbaijan undertakes major reforms to ease its dependence on oil and gas.
It is also one of the two first independent power projects in Azerbaijan.
The ceremony was attended by Ali Asadov, Prime Minister of Azerbaijan, Parviz Shahbazov, Minister of Energy, Mohammad Abunayyan, Chairman of ACWA Power, and Rajit Nanda, Chief Investment Officer of ACWA Power.
ACWA Power CEO Paddy Padmanathan said: “We are pleased to sign this implementation agreement with the Government of Azerbaijan, which expands our geographic footprint of operations into this culturally rich and economically vibrant country straddling Europe and Asia.”
“As a Saudi Arabian company, the trust that is being placed in by the Government of Azerbaijan, the welcome we have received and the trust that is being placed in us are also a testament to the growing economic relationship between Saudi Arabia and Azerbaijan.”
“The investment we will be making in this renewable energy project reinforces the pivotal role that ACWA Power is committed to playing in deploying Saudi foreign investment and promoting the decarbonization of the electricity generation sector by supporting the ambitious sustainability plans and programs being pursued by an increasing number of countries,” he added.
ACWA Power’s expertise will offer best practices in effective arrangement of activities and reduction of renewable energy generation cost, resulting in affordable access to energy for the Azerbaijani communities.
Nanda said: “We continue our legacy and commitment to offering energy at a competitive cost to enable our partners to diversify the energy mix, maximize the deployment of renewable energy and reduce the carbon footprint to achieve the desired socio-economic development goals.
“ACWA Power’s entry into the Azerbaijani market through this ambitious project to produce 240 MW of wind energy is also a testament to the impressive track record we have established in delivering the lowest possible tariffs time and time again to deliver reliable energy to fuel economic growth and social prosperity.”
Nanda concluded that it also confirms “our strong belief in the development of public-private partnerships in the country’s power sector.”
An MoU for the project was signed in March 2019, which determined the basic principles of cooperation in the field of investments in renewable energy sources in Azerbaijan, assessment of existing potential for investments and the creation of necessary conditions.
