Saudi Arabia’s 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 ACWA Power website reports.
The power purchase agreement (PPA) of the project spans over a period of 20 years. The ceremony was attended by the Prime Minister of Azerbaijan, Azerbaijan’s Minister of Energy, the Chairman of ACWA Power and the Chief Investment Officer of ACWA Power.
“The 240 MW project is deemed to bolster the government’s efforts in diversifying Azerbaijan’s energy mix by leveraging the country’s rich renewable energy resources and strengthening energy security”, especially as Azerbaijan is steamrolling major reforms to divert its dependence from oil and gas. It is one of the two first independent power projects in Azerbaijan.
The Chief Executive Officer of ACWA Power announced, “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 the Kingdom of Saudi Arabia and the Republic of Azerbaijan.”
Seven Azerbaijani administrative bodies, consisting of representatives of the Ministries of Energy, Economy, Finance, Emergency Situations, Ecology, and Natural Resources, Justice, as well as the Committee for Urban Planning and Architecture, the State Service for Property Affairs, the State Tax Service, Central Bank, Azerenergy, and Azerishig OJSCs, will be working on the implementation of the agreement, reports MENAFN.
Currently, Azerbaijan is taking consistent steps to develop alternative energy. For this purpose, negotiations are underway with foreign companies and investors, including companies from China, UAE, US, and EU.