ACWA Power has executed the official agreements for a 240 MW wind power project that will be located in the Absheron and Khizi regions. 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 Azerbaijan, and a Power Purchase Agreement and Transmission Connection Agreement with Azerenerji OJSC, the national electrical power company and off-taker for the project.
Though Azerbaijan has relied largely on natural gas to meet its energy needs, the focus is now on diversification and boosting of alternative energy resources. The country has committed to reducing its greenhouse gas emissions by 35% by 2030, under the Paris Agreement. 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.
This agreement represents the first foreign investment-based independent wind power project in Azerbaijan. The plant will contribute to reaching Azerbaijan’s target of 30% of renewable energy capacity by 2030.