Masdar, SOCAR, and ACWA Power collaborate on Azerbaijan's 3.5 GW offshore wind projects

Abu Dhabi Future Energy Company PJSC - Masdar has signed a Memorandum of Understanding with SOCAR Green and ACWA Power to develop 3.5 gigawatts (GW) of offshore wind projects in the Azerbaijan section of the Caspian Sea, a key player in the energy transition and green hydrogen.

Beyond that, the proposed projects would be the first offshore wind farms in Azerbaijan. The deal backs Azerbaijan's aspirations to build water desalination, green hydrogen, and renewable energy facilities.

Key Players Unite

Marco Arcelli, CEO of ACWA Power, Abdulaziz Alobaidli, Chief Operating Officer of Masdar, and Rovshan Najaf, President of SOCAR, signed the Memorandum of Understanding.

To determine the major development milestones, they hope to accomplish in the nation's offshore wind development, the signing parties will adhere to a Corporation Roadmap.

Moreover, Masdar CEO Mohamed Jameel Al Ramahi announced that Azerbaijan is a key strategic partner for Masdar, noting that the signing of a Memorandum of Understanding with ACWA Power and SOCAR will accelerate Azerbaijan's clean energy vision, thus, the partnership aims to explore renewable energy projects in the Caspian Sea, particularly offshore wind potential.

In addition, Rovshan Najaf, President of SOCAR indicated that SOCAR, Masdar, and ACWA Power have partnered to unlock the Caspian Sea's offshore wind potential, aiming to support Azerbaijan's energy transition targets. So, the agreement demonstrates Azerbaijan's commitment to clean energy, economic growth, and environmental stewardship for future generations.



Azerbaijan's Renewable Energy Ambition

New offshore wind projects will enhance Azerbaijan's renewable energy portfolio and complement Masdar's existing projects, including the 230MW Garadagh solar power plant, 315MW Neftchala and 445MW Bilasuvar solar power plants, jointly developed with SOCAR Green, and ACWA Power's Khizi-Absheron wind power plant.

Notably, the initiatives aim to improve energy security, create jobs, and drive sustainable economic growth in Azerbaijan, in line with the consortium's commitment to net-zero emissions by 2050.

SOCAR Green, a subsidiary of Azerbaijan's global energy corporation SOCAR, is leading the nation's transition to renewable energy through large-scale solar, wind, and green hydrogen projects. It partners with international leaders to support Azerbaijan's climate targets and global sustainability goals, ensuring clean energy initiatives.

Offshore Wind Projects: A New Frontier for Azerbaijan

ACWA Power entered Azerbaijan in 2019 to support the country's renewables integration, GHG emissions reduction, and decarbonization targets. The company is expanding its presence with the advanced construction of the 240MW Khizi-Absheron wind farm.

Established in 2006, Masdar has been instrumental in the UAE's global sustainability and climate action vision. With projects in over 40 countries, it aims to increase its renewable energy portfolio capacity to 100GW by 2030 and become a leading green hydrogen producer.

Furthermore, SOCAR and Masdar partnered in January 2023 to develop offshore wind and green hydrogen projects with a capacity of 2 GW.

The Azerbaijan Renewable Energy Agency (AREA) declared in August this year that it will begin wind measuring operations to evaluate offshore wind potential at two sites shortly.

Overall, the World Bank and ESMAP estimate that Azerbaijan has 157 GW of technical offshore wind potential, of which 122 GW is suitable for floating wind and 35 GW is suitable for fixed-bottom projects.

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