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 a 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 1 GW and 1.5 GW of onshore and offshore wind, respectively. The cooperation agreement with SOCAR will ensure collaboration and exploration in the fields of renewable energy and green hydrogen.
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.
REGlobal’s Views: Emerging markets like Azerbaijan are becoming the new investment hotspots for large energy companies like ACWA Power as they adequate untapped potential for renewable energy development and they are now focusing on reducing their reliance on fossil fuels. ACWA Power is already present in Azerbaijan through its earlier investments and is now expanding its reach across many other emerging renewable energy markets in the region.