ACWA Signs Renewable Energy Deals In Azerbaijan
ACWA Power has finalized four separate agreements for the development of new renewable energy in the Republic of Azerbaijan.
ACWA Power said that it signed key implementation agreements with the Ministry of Energy and a cooperation agreement with the State Oil Company of Azerbaijan Republic (SOCAR).
Following on from recent collaborative efforts between the two parties for the $295 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.
“Today marks the expansion of our partnership with ACWA Power through wind power projects at a total capacity of 2.5 GW, and the creation of battery energy storage systems for the first time in our country. These projects are further contributions to the implementation of the state policy which stipulates the development of Azerbaijan as a country of “green growth” and supplier of green energy.”
“Our collaboration with ACWA Power is key to reducing carbon emissions, accelerating the energy transition, as well as ensuring new capacities for the planned green energy corridor from the Caspian to Europe,” Parviz Shahbazov, Minister of Energy of Azerbaijan, said.
“Azerbaijan continues to maintain an upward trajectory towards a cleaner, more sustainable future under the guidance of its wise and forward-thinking leadership. At ACWA Power we greatly value our relationship with our Azerbaijani partners and with the signing of the new agreements today, we are excited to expand our role in accelerating the nation’s energy transformation,” Mohammad Abunayyan, ACWA Power Chairman, stated.
“We look forward to constructive, engaging, and highly valued collaboration with the Ministry of Energy and SOCAR– partnerships that we believe will drive significant achievements and help benefit millions of people,” he added.
The agreements are aimed at enhancing Azerbaijan’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 Shahbazov and Abunayyan, while the MoU with Battery Energy Storage System was signed by Deputy Minister Elnur Soltanov and Raad Al-Saady, the advisor to the Chairman of the Board of ACWA Power.
A cooperation agreement with SOCAR was signed by the advisor to President Afgan Isayev and Al-Saady.
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 meters of natural gas and reduce carbon emissions by more than 400,000 tons 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.
The agreements reaffirm ACWA Power’s commitment to supporting Azerbaijan in meeting its ambitious renewables integration, GHG emissions reduction, and decarbonization targets.
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Published at Thu, 09 Feb 2023 12:00:00 -0800
