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ACWA Power’s Finalized Four MoU’s For Renewable Energy | |
| Sumita Pawar |
ACWA Power, which runs power plants, water desalination plants, and green hydrogen plants all over the world, has said that four separate agreements have been made for the development of new renewable energy in the Republic of Azerbaijan.
In line with ACWA Power’s commitment to lead and enable an 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 the State Oil Company of Azerbaijan Republic (SOCAR), according to the report.
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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, it added.
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, 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, and ensuring new capacities for the planned green energy corridor from the Caspian to Europe," said His Excellency Parviz Shahbazov, Minister of Energy of Azerbaijan.
Mohammad Abunayyan, ACWA Power Chairman, 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."
"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 meant to improve the Republic's national electricity grid by adding more renewable energy sources. They will also put the country in a better position to expand its export market and make sure that the people can use battery storage and offshore wind power.
The implementation agreements for the 1 GW and 1.5 GW wind plants were signed by His Excellency Parviz Shahbazov, Minister of Energy of Azerbaijan, and Mohammad Abunayyan, Chairman of ACWA Power; while the MoU with the Battery Energy Storage System (BESS) was signed by Deputy Minister Mr. Elnur Soltanov and Raad Al-Saady, Advisor to the Chairman of the Board of ACWA Power. A cooperation agreement with SOCAR was signed by the advisor to the president, Mr. Afgan Isayev, and Raad Al-Saady, advisor to the chairman of the board of ACWA Power.
According to the report, ACWA Power is currently working on a 240 MW wind farm project in Azerbaijan, which is expected to produce around one billion kilowatt-hours of electricity per year.
Upon completion, the plant will save about 220 million cubic metres of natural gas and reduce carbon emissions by more than 400,000 metric tonnes per year.
ACWA Power entered the market in Azerbaijan in 2019, and it is continuing to grow in the country.
The company’s public-private partnership model supports foreign direct investment, which is essential for energy infrastructure development, and, in parallel, the company is leveraging its global energy expertise for fast-track development.
The agreements show that ACWA Power is still committed to helping Azerbaijan reach its ambitious goals for integrating renewable energy, reducing greenhouse gas (GHG) emissions, and decarbonizing its energy system.