Saudi Arabia's private utility Acwa Power has signed an initial agreement with UAE's Masdar, and State Oil Company of Azerbaijan Republic (Socar) to develop 500 megawatts of renewable energy projects in the Central Asian country.
The companies will “pool their expertise” to expedite the development of renewable energy projects that accelerate decarbonisation and help Azerbaijan achieve its net-zero goals, Acwa Power said in a statement on Wednesday.
The projects will be located in Azerbaijan's autonomous Nakhchivan enclave – a strip of territory nestled between Armenia, Iran and Turkey.
“Our shared vision for a sustainable and decarbonised future transcends competition,” said Marco Arcelli, chief executive of Acwa Power.
“We are proud to collaborate in helping Azerbaijan advance towards its net-zero goals.”
Riyadh-based Acwa Power entered the Azerbaijan market in 2019 and is developing a 240-megawatt wind power plant in the country, with an investment value of $286 million.
The company signed four agreements with Azerbaijan’s energy minister this year to develop large clean-energy projects, including a 1.5-gigawatt offshore wind farm and a battery energy storage project.
“We’re delighted to join forces with our strategic partners to further the global energy transition and accelerate the development and deployment of renewable energy,” said Mohamed Al Ramahi, chief executive of Masdar.
Masdar, which plans to develop 10 gigawatts of renewable energy projects in Azerbaijan, said the latest agreement would further strengthen Baku’s net-zero ambitions.
Last month the Abu Dhabi-based clean energy company announced the inauguration of the 230-megawatt Garadagh Solar Park in Azerbaijan, the region’s “largest” operational solar plant.
Masdar also signed agreements for solar and onshore wind projects with a total capacity of 1 gigawatt.
“This partnership represents a crucial milestone in our journey toward a sustainable energy future,” said Afgan Isayev, vice president of Socar.
“This strategic alliance underscores our dedication to harnessing the vast potential of solar and wind energy, furthering our efforts to reduce carbon emissions,” he said.
Azerbaijan aims to generate 30 per cent of its total power capacity from clean energy sources by 2030.
Acwa Power, which is backed by the Public Investment Fund, has operations in 12 countries across the Middle East, Africa, Central Asia and South-east Asia.
Its portfolio includes 77 projects in operation, advanced development or construction – with an investment value of $82.8 billion – and the capacity to generate 53.69 gigawatts of power and manage 7.6 million cubic metres of desalinated water a day.
The utility is planning to develop clean energy projects in China, the world's largest renewable energy market, with a special focus on green hydrogen and desalination, Raad Al Saady, Acwa Power’s vice chairman and managing director, told The National last month.
