Today.Az » Business » Pilot project agreements on renewable energy signed with Saudi Arabia, UAE
10 January 2020 [15:54] - Today.Az
By Rasana Gasimova
The Azerbaijani Ministry of Energy and Saudi Arabia’s ACWA Power company and the UAE’s Masdar company executive agreements on the implementation of pilot renewable energy projects in the Cabinet of Ministers on January 9.
Addressing the signing ceremony, Prime Minister Ali Asadov noted that as a result of the successful economic policy pursued by President Ilham Aliyev, energy security is fully ensured in the country. He noted that the development of economy and the growth of the non-oil sector put the country face to face with new challenges and require new approaches.
“Part of the reforms carried out in recent years is related to the production of renewable energy. A number of initiatives have been successfully implemented in this area and the renewable energy sector has recently occupied an important place in the development of the green economy,” he said.
Asadov also stressed that the signing of new agreements with foreign companies is one of the serious steps taken in this area, as these agreements provide for the investments to Azerbaijan, which, will stimulate the national economy and contribute to the creation of new jobs. He went on saying that these projects will ensure the energy sustainability of the country.
Energy Minister Parviz Shahbazov noted that diversification of electricity production through renewable energy sources is one of the country’s priorities.
“By signing these agreements, we are entering a new stage in the development of renewable energy in the country. Our cooperation with ACWA Power and Masdar, as the first foreign partners in the field of renewable energy, will contribute to ensuring mutual interests in achieving goals related to sustainable and clean energy,” he emphasized.
“We are proud to sign this agreement with the government of Azerbaijan. This project, which contributes to increasing the share of renewable energy in order to diversify energy sources in the country, will support the initiatives of the Azerbaijani government on the creation of new services, industrial sectors and new jobs,” Chairman of the Board of ACWA Power Mohammed Abunayyan said.
The Chief Executive of Masdar Mohamed Jameel Al Ramahi noted that the company, which plays a leading role in implementing renewable energy projects in more than 30 countries, is pleased to be Azerbaijan’s partner in the implementation of a 200-megawatt solar energy project. “With 10 years of experience, we are proud to support Azerbaijan and its transition to clean energy,” he said.
Then the documents were signed. According to the agreements, pilot projects will be implemented with ACWA Power for the construction of a 240-megawatt wind farm, and with Masdar for the construction of a 200-megawatt solar power station. These projects are expected to produce 1.4 billion kilowatt / hours of electricity per year.
Note that according to the presidential order “On Accelerating Reforms in the Energy Sector” signed in 2019, partnerships were established with nine international energy companies and intensive discussions were held in order to expand the use of renewable energy sources. The ACWA Power and Masdar companies were selected from seven companies that submitted their proposals after a three stage selection process.
ACWA Power currently has a total installed capacity production portfolio of 30,200 megawatts, reaching 8,000 megawatts globally in renewable energy, and a $45 billion investment portfolio. As to Masdar company, currently it has a production portfolio in the field of renewable energy with a total installed capacity of 4,000 megawatts, and has so far invested $ 8.5 billion in this area.