January 10 (Renewables Now) - Saudi Arabia's ACWA Power has clinched a deal with the government of Azerbaijan to develop, build and operate a 240-MW wind park in the former Soviet republic.
The implementation agreement was signed with the Ministry of Energy of Azerbaijan, ACWA Power said on Thursday as it officially made its entry into that market. The pact follows a memorandum of understanding (MoU) from March 2019 that was sealed to determine the basic principles of cooperation in the renewables sector and to assess the existing investment potential it offers.
The planned wind farm will be installed under the build, own, operate (BOO) model and will operate under 20-year power purchase agreement (PPA). Its implementation fits the local government’s goal to diversify the country’s energy mix and enhance energy security, cutting Azerbaijan's reliance on oil and gas.
“The investment we will be making in this renewable energy project reinforces the pivotal role that ACWA Power is committed to playing in deploying Saudi foreign investment to promote the decarbonisation of the electricity generation sector [..],” said CEO Paddy Padmanathan.
The project is one of the two first independent power projects in Azerbaijan, ACWA Power noted.