Acwa Power is a leading Saudi developer, investor and operator of power generation and water desalination plants in high growth markets.
The key agreements signed by the group included the Investment Agreement with the Azerbaijan government represented by the Ministry of Energy; the Power Purchase Agreement and Transmission Connection Agreement with Azerenerji, the national electrical power company and off-taker for the project.
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.
Prince Abdulaziz Bin Salman Al Saud, Saudi Minister of Energy, said both Saudi Arabia and Azerbaijan enjoyed long-term diplomatic and economic relations, and the cooperation between the two countries has been strengthened recently through their participation in OPEC+.
"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," he added.
He also expressed his confidence in the role that Acwa Power will play in promoting and expanding the cooperation between the two countries 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.
Parviz Shahbazov, Minister of Energy of Azerbaijan said: "The signing of agreements and implementation of the project is an indication of the confidence in the business climate in Azerbaijan and will mark a next stage of economic cooperation between our countries."
"I am confident that after Acwa Power, the other companies from Saudi Arabia will follow suit and will invest in Azerbaijan," he stated.
On the importance of the project, Shahbazov said besides being the first ever foreign investment based IPP, the wind power station annually will also help to generate 1 billion KWh electricity, saving up to 220 million cu m of gas, cutting down on 400,000 tonne of emissions annually in addition to creating new jobs and new production and service areas.
"Acwa Power's global expertise in delivering transformative solutions at an affordable cost, will strongly support Azerbaijan in realising its renewable energy development goals," he added.
Once complete, the project will power 300,000 households besides offsetting 400,000 tonnes of emissions every year.
Acwa Power Chairman Mohammad Abunayyan said the signing of three key agreements today is a significant milestone and a strong step towards unlocking the renewable energy potential of Azerbaijan.
"We are 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," he noted.
"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," Abunayyan added.
Abunayyan also reaffirmed that the agreements signed today will contribute to Azerbaijan's ongoing efforts to deploy renewable energy and provide a better future for upcoming generations.
Through diversifying the Azerbaijani energy mix at affordable costs, the Saudi group will support the Azerbaijani government's plans to achieve its renewable energy targets, he added.
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