Saudi developer ACWA Power has signed crucial agreements with Azerbaijan to advance a $300m wind project with a capacity of 240MW that is key to the country’s efforts to become less dependent on oil and gas in its power supply.

The deals include an investment agreement with the Azeri energy ministry, a power purchase agreement and a transmission connection deal with national power company Azerenerji.

In order to meet a pledge under the Paris climate agreement to reduce its greenhouse gas emissions by 35% by 2030, Azerbaijan aims to reach 30% of renewables in its power mix by 2030.

“I am confident that after ‘ACWA Power’ other companies from Saudi Arabia will follow suit and will invest in Azerbaijan,” Azeri energy minister Parviz Shahbazov said during a signing ceremony.

“Concerning the importance of this project for Azerbaijan, I would like to stress that in addition to being (the) first ever foreign investment based IPP (independent power producer), the wind power station annually will help to generate 1 billion kilowatt hours of electricity, saving up to 220 million cubic meters of gas, cutting down on 400,000 tons of emissions annually, create new jobs and new production and service areas.”

Showing the seriousness of its energy transition plans, the Azeri government together with the World Bank is also developing a road map of the country’s offshore wind potential in the Caspian Sea, as Recharge revealed last month.

Azerbaijan a year ago had already signed preliminary deals with ACWA and also with Abu Dhabi’s Masdar over plans to build large wind and solar plants.

The 240MW onshore wind project now advanced with ACWA will be fast tracked as a public-private partnership and will be located in the Absheron and Khizi regions.

Azerenerji president Balababa Rzayev added the project is also being built in order to save the country’s national gas for other uses: “The implementation of this project will stimulate the development of our national economy, play an important role in ensuring the energy sustainability in our country, allow for saving the gas, which is our natural resource, and have a positive impact on the environment.”

Wind

Saudis sign key deals for wind farm to help wean Azerbaijan off oil