Saudi Arabia and Azerbaijan have signed a landmark agreement worth $300 million for renewable energy projects in the Caspian country.
The Kingdom’s energy leader, ACWA Power will establish the first wind power development in Azerbaijan in partnership with local bodies, in three deals that could signify further joint energy ventures between the two countries.
Prince Abdul Aziz Bin Salman, Saudi Arabia’s energy minister, said that the partnership was another indication of the “long-standing diplomatic and economic relationship” between the Kingdom and Azerbaijan.
“Saudi Arabia is delighted to be a partner in the future growth and development of Azerbaijan through helping it on its renewable energy journey. I am proud to say that the project has been made possible through Saudi expertise and capabilities. ACWA Power is a Saudi national champion in energy, and it will be leveraging its experience, and its track record in successful renewable projects, to help Azerbaijan deliver this strategically important development.”
ACWA, 50 percent owned by the Public Investment Fund (PIF), is one of the key agencies for the Kingdom’s clean energy and high-tech water desalination projects, both domestically and internationally.
Mohammed Abunayyan, chairman of ACWA said that the agreements were a “milestone and a strong step on the road toward the full realization of the potential renewable energy in Azerbaijan.”
Prince Abdul Aziz praised Azerbaijan for its commitment to cuts in oil supply during recent OPEC+ negotiations. “The Kingdom appreciates Azerbaijan’s role in fulfilling its obligations under the declaration of cooperation of OPEC+, and the high level of compliance it has achieved,” he said.
Parviz Shahbazov, Azerbaijan’s energy minister said the deals were an “indication of confidence in the business climate in Azerbaijan and will represent the next stage of economic cooperation between our two countries.”
Mr. Shahbazov expects that the projects in the Absheron and Khizi regions of Azerbaijan will help to generate one billion KW hours of electricity annually and save 220 cubic meters of gas, as well as reduce emissions by 400 million tons per annum.
“I am confident that other companies from Saudi Arabia will follow the example of ACWA and invest in Azerbaijan,” he further added.