ACWA Power Signs Agreements for 1st Foreign Investment Wind Project in Azerbaijan

ACWA Power has executed the official agreements for the 240 MW wind power project that will be located in the Absheron and Khizi regions of Azerbaijan.

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

As the first foreign investment based independent wind power project in Azerbaijan structured as a public-private partnership, the plant will contribute to reaching Azerbaijan’s target of 30 percent 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.

Key agreements signed by ACWA Power, a leading Saudi developer, investor and operator of power generation and water desalination plants, 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.

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“The signing of Agreements and implementation of the Project is an indication of the confidence in the business climate in Azerbaijan and will mark the next stage of economic cooperation between our countries. I am confident that after “ACWA Power” other companies from Saudi Arabia will follow suit and will invest in Azerbaijan. Concerning the importance of this project for Azerbaijan, I would like to stress that in addition to being the first-ever foreign investment based IPP, the wind power station annually will help to generate 1 billion kWh electricity, saving up to 220 million cubic meters of gas, cutting down on 400,000 tons of emissions annually, create new jobs and new production and service areas,” Parviz Shahbazov, Minister of Energy of the Republic of Azerbaijan said.

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 percent by 2030, under the Paris Agreement, which emphasises 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.

“The signing of three key agreements is a significant milestone and a strong step towards unlocking the renewable energy potential of the Republic of Azerbaijan. ACWA Power is honoured to partner with the Ministry of Energy, in Azerbaijan and the national electric power company “Azerenerji” OJSC to develop the first foreign investment based independent wind power plant,” said Mohammad Abunayyan, ACWA Power Chairman.