Utilities Middle East

ACWA signs deals for wind power in Azerbaijan

240MW wind farm to pave the way for sustainabl­e energy developmen­t

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Following the signing of the implementa­tion agreement for the $300mn Independen­t Power Project in January 2020, ACWA Power has executed the official agreements for the 240 MW wind power project that will be located in the Absheron and Khizi regions.

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.

The Kingdom of Saudi Arabia and Azerbaijan have enjoyed long-term diplomatic and economic relations.

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