Saudi Arabia’s ACWA Power enters Azerbaijan market

Baku, January 15 - Neftegaz.RU. Saudi power & water plants developer ACWA Power has signed an implementation agreement with the Ministry of Energy of Azerbaijan for developing, building and operating a 240 MW wind power project. The power purchase agreement (PPA) of the project spans over a period of 20 years on a build-own-operate basis. The signing ceremony was held in the presence of Ali Asadov, PM of Azerbaijan; Parviz Shahbazov, minister of energy; Mohammad Abunayyan, chairman of ACWA Power; and Rajit Nanda, chief investment officer of ACWA Power.

The 240 MW project is deemed to bolster the government’s efforts in diversifying 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. It is one of the first 2 independent power projects in Azerbaijan.

Paddy Padmanathan, CEO of ACWA Power, said: “We are pleased to sign this implementation agreement with 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 us by the government of Azerbaijan and the welcome we have received, are a testament to the growing economic relationship between Saudi Arabia and Azerbaijan.”

“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 decarbonization of the electricity generation sector by supporting the ambitious sustainability plans and programs being pursued by an increasing number of countries,” he added.

An MoU 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.