BAKU, Azerbaijan, Dec. 30
By Fidan Babayeva – Trend:
As a result of the implementation of the first project between Acwa Power (Saudi Arabia) and the Azerbaijani Ministry of Energy, the wind farm will generate about 1 billion kilowatts/hour of electricity per year, save 220 million cubic meters of gas, prevent over 400,000 tons of CO2 emissions, and create new jobs, as well as a perspective for manufacturing and service industries, Energy Minister of Azerbaijan Parviz Shahbazov said Trend reports.
Shahbazov made the remark at the signing ceremony of the ‘Investment Agreement’, ‘Energy Purchase and Sale Agreement’ and ‘Agreement on Connection to the Transmission Network’ on the 240 MW wind power plant project between the Azerbaijani Ministry of Energy and Acwa Power, as well as between the company and Azerenerji OJSC.
The minister of energy noted that the expansion of the use of renewable energy sources in the country was identified by President Ilham Aliyev as a priority, and the goal was to increase the share of renewables to 30 percent by 2030.
The minister also spoke about cooperation with about 10 international energy companies, including ACWA Power, in accordance with the order of the President of Azerbaijan #1209 dated May 29, 2019 ‘On accelerating reforms in the energy sector” for the development of renewable energy, as well as the transparent implementation of the process of selection of companies and the work done under the ‘Executive Agreement on the construction of a wind farm with a capacity of 240 MW, signed in January this year by the Cabinet of Ministers.
Shahbazov also noted the activities of the Commission established to coordinate the execution and implementation of pilot projects for the construction of power plants on renewable energy sources.
“The signing of contracts and the implementation of the project is an indicator of confidence in the business environment in Azerbaijan and marks the beginning of a new stage in our economic cooperation,” he said.
Saudi Arabia's Energy Minister Prince Abdul Aziz bin Salman Al-Saud praised Azerbaijan's fulfillment of its obligations under OPEC Plus and its important role in stabilizing the world oil market. He called the signed contracts for the wind farm an example of a course towards diversifying the economies of both countries.
“This project is important not only for our countries but for the whole world. Because the global energy sector is facing challenges. All energy resources must be used to achieve sustainable development. The agreements signed today on the project will not only help achieve this goal but will also strengthen ties between Saudi Arabia and Azerbaijan. Saudi Arabia is pleased to participate in Azerbaijan's energy diversification policy. The 240 MW project will contribute to the diversification of Azerbaijan's energy sector and progress in the field of renewable energy sources. ACWA Power will leverage its rich experience to support Azerbaijan's efforts to meet its electricity needs in a cost-effective manner, in line with international standards,” Abdul Aziz bin Salman Al-Saud said.
President of Azerenerji OJSC Baba Rzayev also spoke at the event. He provided information on the work carried out by the company in the preparation of draft contracts, and on the work to be performed after their signing.
Rzayev noted that the implementation of this project will stimulate the development of our national economy, play a special role in ensuring the energy sustainability of our country, save gas, which is our natural resource, and have a positive impact on the environment.
Chairman of the Board of ACWA Power Mohammad Abunayan informed about the work done within the framework of the project jointly with the Ministry of Energy and Azerenerji OJSC. He highly appreciated the support provided by the energy ministers of both countries in the implementation of the project.
“Despite the negative consequences of the global COVID-19 pandemic, intensive work continued both on the project and on the formation and approval of contract documents to be signed for the project. The high level of professionalism, dedication, and competence of the parties to the agreement in this area can serve as an example,” Abunayan noted.
On Dec. 29, the Ministry of Energy and Azerenerji OJSC signed ‘Investment Contract’, ‘Energy Purchase Contract’ and ‘Agreement on Connection to the Transmission Network’ for a 240 MW wind power plant with ACWA Power. The contracts were signed during the videoconference. Contracts from the Azerbaijani side were signed by Azerbaijani Energy Minister Parviz Shahbazov, Azerenerji President Baba Rzayev and from ACWA Power, Chairman of the company Mohammad Abunayan with the participation of Saudi Arabian Energy Minister Prince Abdul Aziz bin Salman Al Saud and ambassadors of both countries.
