Saudi Arabia's ACWA Power signs deal for new wind energy project

BOO project in Azerbaijan backed by 20-year power purchase agreement

  
Saudi Acwa Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, June 29, 2018. Image used for illustrative purpose.

Saudi Acwa Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, June 29, 2018. Image used for illustrative purpose.

REUTERS/Youssef Boudlal

Saudi Arabian utility developer ACWA Power has signed an agreement with the government of Azerbaijan to develop a 240 megawatt (MW) wind power project, one of the country's first two Independent Power Projects (IPP).

The project would be developed on Build Own Operate (BOO) basis, and is backed by a 20-year power purchase agreement (PPA), according to an ACWA Power statement.

The statement said the project is in line with the Azerbaijan government's efforts to wean the country off its dependence on oil and gas and to diversify its energy mix.

"The investment we will be making in this renewable energy project reinforces the pivotal role that ACWA Power is committed to playing in deploying Saudi foreign investment to promote the decarbonisation of the electricity generation sector by supporting the ambitious sustainability plans and programs being pursued by an increasing number of countries", Paddy Padmanathan, CEO of ACWA Power said.

(Writing by Nada Al Rifai; Editing by Anoop Menon)

(nada.rifai@refinitiv.com)

© ZAWYA 2020

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