RIYADH, Saudi Arabia, Dec. 30, 2020 /PRNewswire/ -- Following the signing of the implementation agreement for the $300 million Independent Power Project in January 2020, and under the patronage of the Ministry of Energy in Saudi Arabia, ACWA Power today executed the official agreements for the 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 in high growth markets, included the signing of the Investment Agreement with the Government of the Republic of Azerbaijan, represented by the Ministry of Energy. ACWA Power also signed the Power Purchase Agreement and Transmission Connection Agreement with "Azerenerji" OJSC, 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. Once complete, it will power 300,000 households. 400,000 tonnes of emissions will also be offset each year.
H.R.H. Prince Abdulaziz Bin Salman Al Saud, Saudi Minister of Energy, said: "The Kingdom of Saudi Arabia and Azerbaijan enjoy long-term diplomatic and economic relations, and 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."
His Highness also expressed his confidence in the role that ACWA Power will play in promoting and expanding the cooperation between the Kingdom of Saudi Arabia and the Republic of Azerbaijan, 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.
His Excellency Parviz Shahbazov, Minister of Energy of the Republic of Azerbaijan stated; "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" other companies from Saudi Arabia will follow suit and will invest in Azerbaijan. Concerning the importance of this project for Azerbaijan, I would like to stress that in addition to being first ever foreign investment based IPP, the wind power station annually will help to generate 1 billion KWh electricity, saving up to 220 million cubic meters of gas, cutting down on 400,000 tons of emissions annually, create 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.
Mohammad Abunayyan, Chairman of ACWA Power shared his sentiments on the occasion, saying: "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 is 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."
"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, ACWA Power will support the Azerbaijani government's plans to achieve its renewable energy targets.
Mr. Balababa Rzayev, President of "Azerenerji" OJSC said; "According to the contracts to be signed, connecting the 240 MW power plant to be built by the company to the grid and purchasing the power to be generated by the plant will be performed by "Azerenerji" OJSC. The implementation of this project will stimulate the development of our national economy, play an important role in ensuring the energy sustainability in our country, allow for saving the gas, which is our natural resource, and have a positive impact on the environment."
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