In a significant step towards advancing Azerbaijan’s renewable energy ambitions, Masdar, the UAE’s leading clean energy company, has signed a Memorandum of Understanding (MoU) with SOCAR Green, a subsidiary of SOCAR focused on sustainable initiatives, and ACWA Power, the world’s largest private water desalination company and a leader in the energy transition. The partnership aims to develop 3.5 gigawatts (GW) of offshore wind projects in the Azerbaijan section of the Caspian Sea.

These proposed projects represent Azerbaijan’s first venture into offshore wind energy, marking a milestone in the country’s clean energy journey. The MoU also supports Azerbaijan’s plans to expand renewable energy sources, explore green hydrogen, and enhance water desalination capabilities.

The agreement was signed by Rovshan Najaf, President of SOCAR; Abdulaziz Alobaidli, Chief Operating Officer of Masdar; and Marco Arcelli, Chief Executive Officer of ACWA Power.

Collaboration Roadmap

Under the MoU, the partners will develop a Corporation Roadmap, identifying critical development milestones for the offshore wind initiative. The roadmap will serve as a foundation for achieving Azerbaijan’s ambitious renewable energy targets.

Mohamed Jameel Al Ramahi, CEO of Masdar, highlighted the strategic significance of this partnership:

“Azerbaijan is a key strategic partner for Masdar and the signing of this Memorandum of Understanding with our partners today paves the way to accelerate the scale of Azerbaijan’s clean energy vision. We are proud to expand our partnership with ACWA Power and SOCAR to further explore renewable energy projects in the region, especially the enormous offshore wind potential in the Caspian Sea.”

Marco Arcelli, CEO of ACWA Power, noted the global impact of this collaboration:

“We are excited to build on our collaboration with Masdar and SOCAR to advance clean energy globally. United by a shared vision for a sustainable, decarbonised future, this partnership supports Azerbaijan’s net-zero ambitions and sets a strong industry example. With COP29 hosted by Azerbaijan, the country’s leadership in renewable energy, including offshore wind, will be pivotal in shaping the global sustainability agenda.”

Rovshan Najaf, President of SOCAR, emphasised the project’s importance to Azerbaijan’s energy future:

“This agreement represents an important step forward in our journey towards a sustainable energy future. By leveraging the combined expertise of SOCAR, Masdar, and ACWA Power, we aim to unlock the vast offshore wind potential of the Caspian Sea, supporting Azerbaijan’s energy transition targets. These projects not only reflect our dedication to clean energy but also to economic growth and environmental stewardship for future generations.”

Supporting Azerbaijan’s Net-Zero Goals

The offshore wind projects will enhance Azerbaijan’s renewable energy portfolio, complementing Masdar’s and ACWA Power’s existing projects in the region. Masdar’s contributions include the 230MW Garadagh Solar Power Plant and the jointly developed 315MW Neftchala Solar Power Plant and 445MW Bilasuvar Solar Power Plant. Meanwhile, ACWA Power’s 240MW Khizi-Absheron Wind Power Plant has added to the country’s renewable energy landscape.

These initiatives are designed to improve energy security, generate employment, and drive sustainable economic growth in Azerbaijan, aligning with the country’s ambition to achieve net-zero emissions by 2050.