ACWA Power has signed an implementation agreement with the Ministry of Energy of Azerbaijan to develop, build and operate a 240 MW wind power project.
The power purchase agreement (PPA) of the project spans a period of 20 years on a Build Own Operate (BOO) basis.
The 240 MW project will bolster the government’s efforts to diversify Azerbaijan’s energy mix by leveraging the country’s rich renewable energy resources and strengthening energy security, as Azerbaijan is undertaking major reforms to divert its dependence from oil and gas.
Paddy Padmanathan, CEO of ACWA Power: “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.
“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”, Padmanathan added.
ACWA Power aims to boost the overall economic landscape in the Republic of Azerbaijan and will support this by reducing the cost of energy generation, resulting in more affordable access to Azerbaijani communities.
“We continue our legacy and commitment to offering energy at a competitive cost to enable our partners to diversify the energy mix, maximise the deployment of renewable energy and reduce the carbon footprint to achieve the desired socioe-conomic development goals,” said Rajit Nanda, chief investment officer of ACWA Power.
“This ambitious project …also confirms our strong belief in the development of public-private partnerships in the country’s power sector”, Nanda concluded.
It is noteworthy that 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.