UNDER THE PATRONAGE OF THE SAUDI MINISTER OF ENERGY, ACWA POWER SIGNS THREE AGREEMENTS FOR THE FIRST FOREIGN INVESTMENT BASED INDEPENDENT WIND POWER PROJECT IN AZERBAIJAN
Riyadh, Saudi Arabia : Following the signing of the implementation agreement for the $300 million Independent Power Project in January 2020, ACWA Power today executed the official agreements for the 240 MW wind power project that will be located in the Absheron and Khizi regions. The virtual signing ceremony was attended by His Royal Highness Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Saudi Minister of Energy, His Excellency Parviz Shahbazov, Minister of Energy of the Republic of Azerbaijan, Mr. Balababa Rzayev, President of “Azerenerji” OJSC, and Mr. Mohammad Abunayyan, Chairman of ACWA Power.
Key agreements signed by ACWA Power, a leading Saudi developer, investor and operator of power generation and water desalination plants in high growth markets, included the signing of the Investment Agreement with the Government of the Republic of Azerbaijan, represented by the Ministry of Energy. ACWA Power also signed the Power Purchase Agreement and Transmission Connection Agreement with “Azerenerji” OJSC, the national electrical power company and off-taker for the project.
Though Azerbaijan has relied largely on natural gas to meet its energy needs, the focus is now on diversification and boosting of alternative energy resources. Renewables offer the most prominent solution to meeting Azerbaijan’s ambitious climate targets. The country has committed to reducing its greenhouse gas (GHG) emissions by 35% by 2030, under the Paris Agreement, which emphasizes the use of alternative and renewable energy sources to achieve this target. With its excellent wind resources, Azerbaijan’s move towards effectively harnessing wind as a sustainable energy source is being fast tracked by key public private partnerships.
As the first foreign investment based independent wind power project in Azerbaijan structured as a public-private partnership, the plant will contribute to reach Azerbaijan’s target of 30% of renewable energy capacity by 2030. Once complete, it will power 300,000 households. 400,000 tonnes of emissions will also be offset each year, supporting the country’s green ambitions.
His Highness also expressed his confidence in the role that ACWA Power will play in promoting and expanding the cooperation between the Kingdom of Saudi Arabia and the Republic of Azerbaijan, and in supporting the efforts of the Azerbaijani government to meet its national needs of electric energy feasibly, economically and in adherence to international standards.
As a renewable energy leader, ACWA Power’s global expertise in delivering transformative solutions at an affordable cost, will strongly support Azerbaijan in realising its renewable energy development goals.
“ACWA Power continues to leverage its global expertise and capabilities to deliver large scale renewable projects that bring sustainable, socio-economic benefits to communities and markets where we operate. I express my sincere thanks to H.R.H Prince Abdulaziz Bin Salman Al Saud, Saudi Minister of Energy for his guidance and presence and patronage of this signing ceremony with the Azerbaijani Ministry of Energy,” Abunayyan added.
Abunayyan also reaffirmed that the agreements signed today will contribute to Azerbaijan’s ongoing efforts to deploy renewable energy and provide a better future for upcoming generations. Through diversifying the Azerbaijani energy mix at affordable costs, ACWA Power will support the Azerbaijani government’s plans to achieve its renewable energy targets.
ACWA Power remains focused on extending its leadership in high-growth markets through operational excellence and technological expertise, delivering power and desalinated water reliably and responsibly to communities across the globe.