ACWA Power expands its geographic footprint by entering Azerbaijan market

BAKU, ACWA Power signed an implementation agreement with the Ministry of Energy of Azerbaijan today for developing, building and operating a 240MW wind power project, with the power purchase agreement of the project spanning over a period of 20 years on a Build Own Operate basis.

The 240MW 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.

The ceremony was held in the presence of Ali Asadov, Prime Minister of Azerbaijan; Parviz Shahbazov, Minister of Energy; Mohammad Abunayyan, Chairman of ACWA Power, and Rajit Nanda, Chief Investment Officer of ACWA Power.

Commenting on the signing ceremony, Paddy Padmanathan, CEO 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 us by the Government of Azerbaijan and the welcome we have received are a testament to the growing economic relationship between the Kingdom of Saudi Arabia and the Republic of Azerbaijan.”

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

Nanda 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 socio-economic development goals.”

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, the assessment of existing potential for investments and the creation of necessary conditions.

Source: Emirates News Agency