Saudi's ACWA Power inks deal for 240MW Azerbaijan wind project
The Saudi Arabia-based developer enters Azerbaijan “to promote decarbonisation of the electricity generation sector”
Saudi Arabia-based developer and operator of power generation and water desalination projects ACWA Power has inked an implementation agreement with Azerbaijan’s Ministry of Energy to develop, build, and operate a 240MW wind power project.
The power purchase agreement (PPA) for the project covers a period of 20 years on a build-own-operate (BOO) basis, and aims to diversify Azerbaijan’s energy mix by leveraging the country’s renewable energy resources.
The project is one of two independent power projects in Azerbaijan, which is looking to move away from its dependence on oil and gas.
The agreement was inked in the presence of the Prime Minister of Azerbaijan, HE Ali Asadov; Azerbaijan’s Minister of Energy, Parviz Shahbazov; the chairman of ACWA Power, Mohammad Abunayyan; and the chief investment officer of ACWA Power, Rajit Nanda.
Commenting on the deal, the chief executive officer of ACWA Power, Paddy Padmanathan, said: “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.”
Sharing his thoughts on the implementation agreement, Nanda said: “ACWA Power’s entry into the Azerbaijani market through this ambitious project to produce 240MW 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 added: “It also confirms our strong belief in the development of public private partnerships in the country’s power sector.”