Azerbaijan has agreed separate deals with ACWA Power and Masdar to develop renewable energy projects totalling 440MW in the country.
ACWA Power signed an implementation agreement with the Ministry of Energy to develop, build and operate a 240MW wind farm.
The project has a 20-year power purchase agreement (PPA) on a build own operate (BOO) basis.
ACWA Power chief executive Paddy Padmanathan said: “We are pleased to sign this implementation agreement with the government of Azerbaijan, which expands our geographic footprint of operations into this culturally rich and economically vibrant country straddling Europe and Asia.
“As a Saudi Arabian company, the trust that is being placed in by the government of Azerbaijan, the welcome we have received and the trust that is being placed in us are also a testament to the growing economic relationship between the Kingdom of Saudi Arabia and the Republic of Azerbaijan.”
Meanwhile, UAE company Masdar signed an agreement with the Ministry of Energy to design, finance, build and operate a 200MW solar farm, which will be located 75km southwest of the capital, Baku.
Financial close on the project is targeted for the end of 2020, while commercial operation is expected in 2022.
Azerbaijan Minister of Energy Parviz Shahbazov said: “The diversification of electricity production via utilising renewable energy sources is one of the main priorities of focus by the President of the Republic of Azerbaijan.
“By signing this agreement, from now on, we are starting a new phase in the renewable energy sector of Azerbaijan.
“Our cooperation with Masdar, as one of our first foreign partners in the renewable energy sector, will make a contribution to achieve our goals regarding sustainable and clean energy, and facilitate to deliver our shared interests.”
Masdar chief executive Mohamed Jameel Al Ramahi said: “Today’s signing marks a major step forward for Azerbaijan and its ambitions to diversify its energy mix.
“As a global leader in the development of commercially viable renewable energy projects in more than 30 countries, Masdar is honoured to partner with the Republic of Azerbaijan to develop the landmark 200MW solar project.
“With more than a decade of experience, we are also proud to be supporting the government of Azerbaijan and its clean energy transition.”
The projects will support Azerbaijan’s target of producing 30% of its domestic power needs from renewable energy sources by 2030.