Abu Dhabi's clean energy company, Masdar, and Acwa Power, based in Saudi Arabia, have both signed agreements with Azerbaijan's Ministry of Energy to develop renewables projects.
Masdar's agreement will see it develop, build and operate a 200 megawatt solar PV project, which will be located 75 kilometres southwest of the capital, Baku. Financial close on the project is targeted for the end of 2020, while commercial operation is expected to be achieved in 2022, the company said in a statement.
“Today’s signing marks a major step forward for Azerbaijan and its ambitions to diversify its energy mix," said Masdar's chief executive, Mohamed Al Ramahi.
"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."
“By signing this agreement, from now on, we are starting a new phase in the renewable energy sector of Azerbaijan. Our co-operation 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," said Minister of Energy Parviz Shahbazov.
ACWA Power, meanwhile, signed an agreement to develop, build and operate a 240MW wind power project after agreeing a 20-year power purchase agreement with the Ministry.
These are the first two independent power projects signed by Azerbaijan's government, which has set itself a target of producing 30 per cent of its domestic power needs from renewable energy sources by 2030.
"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 programmes being pursued by an increasing number of countries,” said the company's chief executive, Paddy Padmanathan.