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Azerbaijan, UAE to ink final agreements on solar energy projects

Oil&Gas Materials 19 January 2021 18:52
Azerbaijan, UAE to ink final agreements on solar energy projects

BAKU, Azerbaijan, Jan. 19

By Fidan Babayeva – Trend:

Negotiations are ongoing with the UAE Masdar company on the construction of a solar power plant in Azerbaijan, and it is planned to sign final agreements in the coming months, Acting Director of the State Agency for Alternative and Renewable Energy Sources of Azerbaijan (AREA) Tabriz Ammayev told Trend.

According to him, on December 29, 2020, between the Ministry of Energy of Azerbaijan, Azerenerji OJSC and the ACWA Power company of Saudi Arabia, an ‘investment contract’, an ‘energy purchase and sale agreement’ and ‘an agreement for connecting to the transmission network’ were signed for the wind power project with a capacity of 240 megawatts.

“At the next stage, appropriate measures will be taken to change the category of land in the territories where the wind power plant will be built, and to transfer state land in these territories to the permanent use of the Ministry of Energy with the right to lease. In addition, the necessary steps will be taken to sign a ‘land lease agreement’, a ‘direct agreement’ and an ‘independent engineering agreement’," Ammayev said.

“At the same time, in the areas where the pilot project is being implemented, work will be carried out to improve the necessary external and internal infrastructure, to connect the wind farm to the transmission network in accordance with the ‘energy purchase and sale agreement’ and ‘the agreement for connecting to the transmission network’ in accordance with the established deadlines and parameters, as well as on the implementation of other administrative and technical issues necessary for the timely implementation of the project,” said the acting director.

“For the first time, as a result of the implementation of such a project based on foreign investment, the wind farm will generate about 1 billion kilowatt / hour of electricity per year, saving 220 million cubic meters of gas and preventing emissions of more than 400,000 tons of carbon dioxide into the atmosphere, moreover, it will create new industries and services", Ammayev added.

The use of renewable energy sources was identified by the head of state as one of the priority areas for the development of the energy sector. Thus, the focus is on the implementation of pilot projects for the construction of a wind power plant with a capacity of 240 megawatts and a solar power plant with a capacity of 200 megawatts in accordance with agreements signed with ACWA Power and Masdar (OJSC) on January 9, 2021.

In order to fulfill the relevant order of the president of Azerbaijan, seven working groups function, consisting of representatives of the Ministries of Energy, Economy, Finance, Emergency Situations, Ecology and Natural Resources, Justice, as well as the Committee for Urban Planning and Architecture, the State Property Service, the State Tax Service, Central Bank, Azerenerji OJSC and Azerishig OJSC.

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