Azerbaijan has signed agreements with Saudi Arabia’s ACWA Power for the construction of a 240-megawatt wind farm.
Following the signing of the implementation agreement for the $300 million project in January, ACWA Power said it has now executed the official agreements for the wind power project that will be located in the Absheron and Khizi regions.
Key agreements signed by ACWA Power included the signing of the investment agreement with the Government of the Republic of Azerbaijan, a power purchase agreement and a transmission connection agreement with Azerenerji, the national electrical power company.
Azerbaijan’s Energy Minister Parviz Shahbazov and his Saudi counterpart, Crown Prince Abdulaziz bin Salman Al Saud, attended the signing ceremony via video conference.
Shahbazov said Azerbaijan plans to increase the share of clean energy in electricity generation to 30 percent over the next decade.
The wind park will help Azerbaijan to save 220 million cubic metres of natural gas a year and reduce carbon emissions by 400,000 tons a year. Once complete, it will power 300,000 households.
Although Azerbaijan has relied largely on natural gas to meet its energy needs, the focus is now on diversification and boosting of alternative energy resources.
Mohammad Abunayyan, chairman of ACWA Power
Mohammad Abunayyan, chairman of ACWA Power, said: “The signing of three key agreements today is a significant milestone and a strong step towards unlocking the renewable energy potential of the Republic of Azerbaijan.
“ACWA Power continues to leverage its global expertise and capabilities to deliver large scale renewable projects that bring sustainable, socio-economic benefits to communities and markets where we operate.”
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