Saudi-listed ACWA Power, has announced the signing of a Memorandum of Understanding (MoU) with Abu Dhabi Future Energy Company, also known as Masdar, and State Oil Company of Azerbaijan Republic (SOCAR) to develop 500MW of renewable energy projects in Nakhchivan Autonomous Republic of the Republic of Azerbaijan.

The MoU was signed by 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 two of the largest independent power producers (IPP) of clean energy globally and within the region and an integrated national oil and gas company providing energy security of the Republic of Azerbaijan, the signing parties to the MoU will see the organisations pool their expertise to expedite the development of renewable energy projects that accelerate decarbonisation and help Azerbaijan achieve its net-zero goals.

ACWA Power entered the Azerbaijan market in 2019, with the intention of supporting the Central Asian nation in meeting its ambitious renewables integration, greenhouse gas (GHG) emissions reduction, and decarbonisation targets.

ACWA Power is currently developing a 240MW wind power plant in Azerbaijan, at an investment value of US$286 million. Meanwhile, four implementation agreements for mega giga projects including a 1GW onshore, a 1.5GW offshore wind farm and a battery energy storage project were signed earlier this year with the Azeri Ministry of Energy, while a cooperation agreement with State Oil Company of Azerbaijan Republic (SOCAR) will enable collaboration and exploration in the fields of renewable energy and green hydrogen.

Masdar has been active in Azerbaijan since 2020 and developed the 230MW Garadagh solar plant, which become operational in October this year. The UAE’s clean energy pioneer has also signed agreements to develop onshore wind and solar projects and integrated offshore wind and green hydrogen projects with a total combined capacity of 4GW in the country. Masdar and Azerbaijan have agreed on an option to expand the total capacity for renewable projects to 10GW across multiple technologies.