Following the signing of an implementation agreement for a $300 million Independent Power Project in January 2020 with ACWA Power under the Ministry of Energy in Saudi Arabia, the official agreements for a 240 MW wind power project was finalized in the Azerbaijani regions of Absheron and Khizi.
ACWA Power’s official statement on the arrangement revealed that Saudi Arabia will develop Azerbaijan’s first wind power development in collaboration with local entities, in three deals that could herald further joint energy projects between the two countries.
The collaboration was a further example of the “long-standing diplomatic and economic relationship” between Saudi Arabia and Azerbaijan, Prince Abdul Aziz Bin Salman, Saudi Arabia’s Energy Minister stated in an online signing ceremony.
Parviz Shahbazov, Azerbaijan’s Minister of Energy stated, “The signing of agreements and implementation of the project is an indication of the confidence in the business climate in Azerbaijan and will mark a next stage of economic cooperation between our countries. I am confident that after “ACWA Power” other companies from Saudi Arabia will follow suit and will invest in Azerbaijan.
Arab News reports that, as the first foreign investment based independent wind power project in Azerbaijan structured as a public-private partnership, the plant will contribute to Azerbaijan’s goal of 30% renewable energy capacity by 2030. Once complete, it will power 300,000 households. 400,000 tonnes of emissions will also be offset each year.