ACWA Power has finalized four separate agreements for the development of new renewable energy in the Republic of Azerbaijan.
ACWA Power said it signed key implementation agreements with the Ministry of Energy and a cooperation agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR).
Following recent collaborative efforts between the two parties for the $295 billion, 240 MW wind farm project, ACWA Power’s new memorandum of understanding with the Ministry of Energy of Azerbaijan involves the development of a battery energy storage system, along with implementation agreements for 1 GW and 1.5 GW. land and sea 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 with 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 that stipulates the development of Azerbaijan as a “green growth” country and a supplier of green energy.”
“Our collaboration with ACWA Power is key to reducing carbon emissions, accelerating the energy transition, as well as securing new capacities for the planned green energy corridor from the Caspian to Europe,” said Parviz Shahbazov, Minister of Energy of Azerbaijan.
“Azerbaijan continues to maintain an upward trajectory towards a cleaner and more sustainable future under the guidance of its wise and forward-looking leadership. At ACWA Power we greatly value our relationship with our Azerbaijani partners and the signing of the new agreements today, we are excited to expand our role in accelerating the nation’s energy transformation,” stated Mohammad Abunayyan, President of ACWA Power.
“We look forward to a 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 aim to improve Azerbaijan’s national electricity grid by integrating additional renewable energy sources, as well as position the country to expand its export market and ensure that the population benefits from storage of batteries and the capacities of offshore wind.
Shahbazov and Abunayyan signed the implementation agreements for the 1 GW and 1.5 GW wind power plants, while the agreement protocol on the battery energy storage system was signed by Deputy Minister Elnur Soltanov and Raad Al-Saady, Advisor to the Chairman of the ACWA Council. power
Advisor to the President Afgan Isayev and Al-Saady signed a cooperation agreement with SOCAR.
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 annually once completed.
ACWA Power entered the Azerbaijan market in 2019 and continues to expand its geographic footprint in the country. The company’s public-private collaboration model supports direct foreign investment, which is essential for the development of energy infrastructure.
The agreements reaffirm ACWA Power’s commitment to support Azerbaijan in achieving its ambitious renewable integration, GHG emission reduction and decarbonization goals.
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