Saudi Arabia-based power plant developer, ACWA Power and the Azerbaijani Ministry of Energy have started the construction works on a 240-megawatt wind energy project in the Central Asian country with an investment value of $300 million.
The greenfield independent power project is expected to help Azerbaijan meet its target for renewable energy by supplying 30 percent of the country’s energy requirements by 2030.
The project, which is expected to be completed by the fourth quarter of 2023, will contribute around 3.7 percent of energy to the country’s total national grid capacity and power 300,000 households while offsetting 400,000 tonnes of emissions.
“The wind project reflects the strategic partnership between Saudi Arabia and Azerbaijan in various fields, especially the energy sector. In addition to the two countries’ long-term diplomatic and economic relations, cooperation between them has been strengthened in recent years as Azerbaijan became a member of Opec+.”
According to the International Energy Agency, Azerbaijan has significant untapped potential for renewable energy, with a relatively sunny and windy climate, plus sizeable hydro, biomass and geothermal resources.
“We are pleased to see that private companies from outside Azerbaijan invest in our country. These investments leverage global expertise by sharing international best practices, support human capital development and enable knowledge transfer into the country,” Mr. Parviz Shahbazov, Azerbaijan’s Minister of Energy, stated.
Azerbaijan, which largely relies on natural gas to meet its energy needs, has committed to reducing its greenhouse gas emissions by 35 percent by 2030 and is fast-tracking public-private partnerships to develop wind projects in the country.
At the ground-breaking ceremony, ACWA Power also signed a preliminary agreement for an offshore wind project with the Ministry of Energy, highlighting its ongoing strategic partnership and commitment to developing the energy sector in Azerbaijan.
Acwa Power, which is listed on the Tadawul stock exchange, operates in 13 countries in the Middle East, Central Asia, Africa and South-East Asia. It has a portfolio of 66 assets with a total investment of $67.2 billion producing 42.8 gigawatts of power and 6.4 million cubic meters per day of desalinated water.