ACWA Power, a prominent Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen facilities worldwide, has announced the finalization of four distinct agreements aimed at advancing new renewable energy projects in the Republic of Azerbaijan.

Source: ACWA Power

Reflecting ACWA Power's dedication to spearheading energy transition through a strong public-private partnership model, the company has established significant implementation agreements with the Ministry of Energy, along with a cooperation agreement with the State Oil Company of Azerbaijan Republic (SOCAR).

Building on recent collaborative initiatives, including the SAR 1.1 billion 240 MW wind power plant project, ACWA Power’s new Memorandum of Understanding (MoU) with Azerbaijan’s Ministry of Energy involves the development of a battery energy storage system, along with agreements for 1 GW and 1.5 GW of onshore and offshore wind projects, respectively. The cooperation agreement with SOCAR aims to foster collaboration and exploration in renewable energy and green hydrogen sectors.

These agreements are designed to enhance Azerbaijan’s national electricity grid by integrating additional renewable energy sources, while also positioning the country to expand its export market and ensuring the population benefits from battery storage and offshore wind capabilities.

The implementation agreements for the 1 GW and 1.5 GW wind plants were signed by His Excellency Parviz Shahbazov, Minister of Energy of Azerbaijan, and Mohammad Abunayyan, Chairman of ACWA Power. The MoU regarding the 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. The cooperation agreement with SOCAR was signed by the Advisor to the President, Mr. Afgan Isayev, and Raad Al-Saady.

We look forward to constructive, engaging, and highly valued collaboration with Ministry of Energy and SOCAR– partnerships that we believe will drive significant achievements and help benefit millions of people.

Currently, ACWA Power is implementing a 240 MW wind farm project in Azerbaijan, which is anticipated to generate approximately one billion kilowatt-hours of electricity annually. Once completed, the plant is expected to save around 220 million cubic meters of natural gas and reduce carbon emissions by over 400,000 tonnes each year.

Since entering the Azerbaijan market in 2019, ACWA Power has been broadening its geographic presence within the country. The company's public-private partnership model encourages foreign direct investment, which is vital for energy infrastructure development. Concurrently, ACWA Power is utilizing its global energy expertise to expedite development. These agreements underscore ACWA Power’s commitment to assisting Azerbaijan in achieving its ambitious renewable integration, greenhouse gas (GHG) emissions reduction, and decarbonization goals.