ACWA Power, and Saudi Arabian company, has signed an implementation agreement with the Ministry of Energy of Azerbaijan to develop, build and operate a 240-MW wind power project.
The project – one of the two first independent power projects in Azerbaijan, according to a press release — will be constructed on a build own operate (BOO) basis, and the power purchase agreement (PPA) spans 20 years.
The project will bolster the government’s efforts in diversifying Azerbaijan’s energy mix by leveraging the country’s renewable energy resources and strengthening energy security, ACWA Power says. Azerbaijan is undertaking major reforms to divert its dependence from oil and gas.
“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,” said Paddy Padmanathan, chief executive officer of ACWA Power. “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 to promote the decarbonisation of the electricity generation sector by supporting the ambitious sustainability plans and programs being pursued by an increasing number of countries.”
A memorandum of understanding for the wind 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 creation of necessary conditions.
In October 2019, ACWA Power signed a power purchase agreement to develop, finance, construct and operate the 200-MW Kom Ombo photovoltaic plant in Egypt.