Azerbaijan's Ministry of Energy and Saudi developer Acwa Power held a groundbreaking ceremony in Baku on January 14 for a 240-megawatt wind power plant in the Azerbaijan’s Absheron and Khizi districts.
The US$300 million independent power producer (IPP) project agreement was signed by Acwa Power following the conclusion of a long-term power purchase agreement.
The wind energy project represents the first and largest foreign investment made in Azerbaijan’s renewable energy sector to date, and contributes to the country’s target of generating 30% of its energy through renewables, Acwa Power says. It is an important step in Azerbaijan’s energy diversification plans, and will help meet the country's growing power demand as it continues to pursue economic growth and sustainable development.
By the fourth quarter of 2023, the project is expected to contribute an estimated 3.7% of Azerbaijan’s total national grid capacity.
Those attending the ceremony included of Azerbaijan President Ilham Aliyev and Saudi Arabia's energy minister Abdulaziz bin Salman Al Saud.
Acwa Power also signed a memorandum of agreement for an offshore wind project, highlighting its ongoing strategic partnership and commitment to developing the energy sector in Azerbaijan.