Following the signing of the implementation agreement for the US$300mn independent power project in January 2020, ACWA Power has executed the official agreements for the 240MW wind power project that will be located in the Absheron and Khizi regions
The virtual signing ceremony was attended by HRH Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Saudi Minister of Energy; HE Parviz Shahbazov, Minister of Energy of the Republic of Azerbaijan; Balababa Rzayev, President of ?Azerenerji? OJSC and Mohammad Abunayyan, chairman of ACWA Power.
Major agreements signed by ACWA Power 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.
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.
HRH Prince Abdulaziz Bin Salman Al Saud, Saudi minister of energy, said, ?Azerbaijan, along with other member countries played an important role in promoting stability in global oil markets. We appreciate Azerbaijan's efforts to fulfil its obligations under the Declaration of Cooperation, and the high level of compliance it has achieved.?
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.
HE Parviz Shahbazov, minister of energy of the Republic of Azerbaijan, stated, ?Concerning the importance of this project for Azerbaijan, I would like to stress that in addition to being first ever foreign investment based IPP, the wind power station annually will help to generate one billion KWh electricity, saving up to 220mn cu/m of gas, cutting down on 400,000 tons of emissions annually, create new jobs and new production and service areas.?
