Saudi Arabian energy company ACWA Power has expanded its presence in Azerbaijan by signing an implementation agreement with the Azerbaijan Ministry of Energy for a 240MW wind power project.
According to the agreement, ACWA will develop, build and operate the wind facility. A 20-year power purchase agreement (PPA) was signed for the project on a Build-Own-Operate (BOO) basis.
ACWA Power CEO Paddy Padmanathan said: “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.
“As a Saudi Arabian company, the trust that is being placed in by the Government of Azerbaijan, the welcome we have received and the trust that is being placed in us is also a testament to the growing economic relationship between the Kingdom of Saudi Arabia and the Republic of Azerbaijan.”
For the project, the company will offer its expertise in improving operations and reducing renewable energy generation cost.
Following the completion, the wind power project will support the government’s efforts in diversifying Azerbaijan’s energy mix by using renewable energy resources and strengthening energy security.
Azerbaijan has implemented multiple initiatives to reduce its dependency on oil and gas for power generation activities.
The 240MW project is considered to be one of the two first independent power projects in Azerbaijan.
ACWA Power chief investment officer Rajit Nanda said: “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 socio-economic development goals.”
Last November, ACWA Power signed a 200MW solar PPA with the Government of Egypt.
ACWA will finance, develop, build and operate the Kom Ombo solar photovoltaic (PV) plant.