ACWA Power signed today 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 (BOO) basis. The ceremony was held in the presence of His Excellency Ali Asadov, Prime Minister of Azerbaijan, Mr. 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 two first independent power projects in Azerbaijan.

Paddy Padmanathan, Chief Executive Officer of ACWA Power 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 are also a testament to the growing economic relationship between the Kingdom of Saudi Arabia and the Republic of 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 decarbonisation of the electricity generation sector by supporting the ambitious sustainability plans and programs being pursued by an increasing number of countries”, Padmanathan added.

ACWA Power’s expertise will offer best practices in effective arrangement of activities and reduction of renewable energy generation cost, resulting in affordable access to energy for the Azerbaijani communities and boosting the overall economic landscape in the Republic of Azerbaijan.

Rajit Nanda, Chief Investment Officer of ACWA Power 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 socioeconomic development goals”

“ACWA Power’s entry into the Azerbaijani market through this ambitious project to produce 240 MW of wind energy is alsoa testament to the impressive track record we have established in delivering the lowest possible tariffs time and time again to deliver reliable energy to fuel economic growth and social prosperity. It also confirms our strong belief in the development of public private partnerships in the country’s power sector”, Nanda concluded.

It is noteworthy that a Memorandum of Understanding 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.