In a significant development in the renewable energy sector, Saudi-listed ACWA Power, a global leader in private water desalination and green hydrogen production, has partnered with Abu Dhabi Future Energy Company, commonly known as Masdar, and the State Oil Company of Azerbaijan Republic (SOCAR) to collaborate on a groundbreaking renewable energy initiative. The three entities have inked a Memorandum of Understanding (MoU) to jointly develop 500MW of renewable energy projects in the Nakhchivan Autonomous Republic of the Republic of Azerbaijan.
The MoU signing ceremony was graced by the presence of prominent figures from each organization, including Thomas Brostrom, Chief Investment Officer of ACWA Power, Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Afgan Isayev, Vice President of SOCAR.
As global leaders in independent power production of clean energy and an integrated national oil and gas company responsible for ensuring energy security in Azerbaijan, these three entities are joining forces to expedite the deployment of renewable energy projects. Their collaborative efforts aim to accelerate decarbonization and assist Azerbaijan in reaching its net-zero emissions targets.
Commenting on the partnership, Marco Arcelli, Chief Executive Officer of ACWA Power, expressed his enthusiasm, stating, “We are thrilled to join forces with Masdar and SOCAR in our commitment to advancing clean energy solutions around the world. Our shared vision for a sustainable and decarbonized future transcends competition. By coming together, ACWA Power, Masdar, and SOCAR are demonstrating our unwavering commitment to accelerate decarbonization efforts globally. We are proud to collaborate in helping Azerbaijan advance towards its net-zero goals, and through this partnership, we aim to set an example for the industry.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, added, “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. This builds on Masdar’s existing partnership with Azerbaijan for the 230MW Garadagh Solar PV plant, the largest in the region. With plans to develop a potential pipeline of up to 10GW of renewable energy projects in the Central Asia nation, this latest collaboration in Nakhchivan will further strengthen Azerbaijan’s net-zero ambitions. Our alliance with ACWA Power and SOCAR demonstrates our shared goal of supporting countries to diversify their energy mix and decarbonize economies for a greener, cleaner future.”
Afgan Isayev, Vice-President of SOCAR, expressed their pleasure at formalizing this tripartite collaboration and said, “We are pleased to announce the formalization of the tripartite collaboration between SOCAR and our esteemed partners, Masdar and ACWA Power, solidifying our aspiration to advancing renewable energy initiatives in Azerbaijan. Building upon our existing collaboration with Masdar and our ongoing cooperation with ACWA Power, this partnership represents a crucial milestone in our journey toward a sustainable energy future. This strategic alliance underscores our dedication to harnessing the vast potential of solar and wind energy, furthering our efforts to reduce carbon emissions, and fostering economic growth in our region. We are excited to embark on this path of energy transition, ultimately contributing to a greener and more prosperous Azerbaijan.”
ACWA Power’s entry into the Azerbaijan market in 2019 marked its commitment to supporting the nation’s ambitious goals for renewables integration, greenhouse gas emissions reduction, and decarbonization. Currently, the company is developing a 240MW wind power plant in Azerbaijan, with an investment value of US$286 million. Additionally, ACWA Power has signed several agreements for mega giga projects, including a 1GW onshore wind farm, a 1.5GW offshore wind farm, and a battery energy storage project, in collaboration with the Azeri Ministry of Energy. Their cooperation agreement with SOCAR further facilitates collaboration and exploration in the fields of renewable energy and green hydrogen.
Masdar, actively involved in Azerbaijan since 2020, successfully developed the 230MW Garadagh solar plant, which commenced operations in October of the present year. The UAE’s clean energy pioneer has also inked agreements for onshore wind and solar projects, as well as integrated offshore wind and green hydrogen projects, with a combined capacity of 4GW in the country. Furthermore, Masdar and Azerbaijan have mutually agreed upon an option to expand the total capacity for renewable projects to an impressive 10GW, encompassing various renewable technologies. This partnership signifies a significant step toward a more sustainable and eco-friendly energy landscape in Azerbaijan and the broader region.