ACWA Power, a leading Saudi developer, has announced that four separate agreements have been finalised for the development of new renewable energy in the Republic of Azerbaijan.
In line with ACWA Power’s commitment to lead and enable energy transition underpinned by its robust public-private partnership model, the company has signed key implementation agreements with the Ministry of Energy and cooperation agreement with State Oil Company of Azerbaijan Republic (SOCAR).
Following on from recent collaborative efforts between the two parties for the SAR 1.1 billion 240 MW wind power plant project, ACWA Power’s new MoU with Azerbaijan’s Ministry of Energy entails the development of a battery energy storage system, together with implementation agreements for 1GW and 1.5GW of onshore and offshore wind, respectively. While the cooperation agreement reached with SOCAR will ensure collaboration and exploration in the fields of renewable energy and green hydrogen.
The agreements are aimed at enhancing the Republic’s national electricity grid by integrating additional renewable energy sources, as well as positioning the country to broaden its export market and ensuring the population benefits from battery storage and offshore wind capabilities.
The implementation agreements for the 1 GW and 1.5GW wind plants were signed by His Excellency Parviz Shahbazov, Minister of Energy of Azerbaijan, and Mohammad Abunayyan, Chairman of ACWA Power; while the MoU with Battery Energy Storage System (BESS) was signed by Deputy Minister Mr. Elnur Soltanov, and Raad Al-Saady, Advisor to the Chairman of the Board of ACWA Power. Cooperation agreement with SOCAR was signed by the Advisor to the President, Mr. Afgan Isayev and Raad Al-Saady, Advisor to the Chairman of the Board of ACWA Power.
ACWA Power is currently implementing a 240 MW wind farm project in Azerbaijan, which is expected to produce around one billion kilowatt-hours of electricity per year. The plant will save about 220 million cubic metres of natural gas and reduce carbon emissions by more than 400,000 tonnes per year upon completion.
ACWA Power entered the Azerbaijan market in 2019 and continues to expand its geographic footprint in the country. The company’s public-private partnership model supports foreign direct investment which is essential for energy infrastructure development, and, in parallel the company is leveraging its global energy expertise for a fast track development. The agreements reaffirm ACWA Power’s commitment to support Azerbaijan in meeting its ambitious renewables integration, greenhouse gas (GHG) emissions reduction, and decarbonisation targets.
