Baku, November 23, AZERTAC

“ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation, renewable energy and desalinated water production plants. We are a company dedicated to the sustainable innovative solutions on the water and energy management.

We are currently located in 13 countries and managing $95 billion of assets and 60 gigawatt of electricity generation companies. We daily generate 8 million cubic meters of water and we can say that we are one of the biggest water companies in the world.

Currently in Azerbaijan, the Absheron and Khizi, 240-megawatt wind power project is the first project of ACWA Power. As you see, our parts have already started to be delivered to our projects. We have two sites of the project, Absheron and Khizi.

The Absheron part of the project has a capacity of 78 megawatts, and we have completed most of the concrete pouring for the foundation work. Weather permitting, we will begin erecting the turbines soon. Our turbines are 6.5 megawatts each, and at the time of design, they were the largest commercially available. We aim to complete a project by November 2025. The project is expected to generate about 900,000 MWh of electricity annually, reducing Azerbaijan’s carbon emissions by 400,000 tons per year.

The selection of a wind site begins with collecting wind data. Naturally, there must be wind, but both excessive and insufficient wind are unsuitable. We need to carefully measure wind characteristics. Too much wind can result in energy loss, as wind turbines cannot operate above a certain wind speed. We collect wind data from potential sites for over a year, study it to understand the wind characteristics, and, based on this analysis, determine the optimal locations for constructing wind towers.

Measuring wind data takes more than a year, after which we study the data and design the turbines, selecting the appropriate turbine types. We then proceed with geological studies. The foundation is one of the key components, and as you can see, the wind turbine foundation here is complete. After the foundation is prepared, we move on to the towers, which are staged in our lay-down area. We will stack them and then attach the nozzles and plates. From this point, if the weather permits, erecting a wind tower takes about 7 to 10 days to complete.

When we develop a wind power project, it is also important to consider the environmental and social aspects. Obviously, a wind project spreads around a wide area and a part of the daily and normal life of the community around, you cannot restrict and put a fence around wind projects. Wind projects before constructing goes through a scrutiny and environmental impact assessment, social aspects also taken into consideration, be it floral, animal and also the bird life. In this project I can proudly say that we are meeting the highest environmental social criteria from all aspects from as I mentioned from the animal habitat to floral and also for the birds. We take pride of the community relations and environmental and social programs as well as the measures we put in this project,” said Mehmet Selim Guven, ACWA Power company's Regional Director for Azerbaijan and Türkiye, in an interview with AZERTAC.

-How did the ACWA Power company decide to establish the relations with Azerbaijan and invest in our country?

- When deciding to enter a country, we consider several key criteria. For example, the business environment is critical. Azerbaijan has a well-established, politically stable landscape and a business-friendly environment, with support from various agencies and the presidential office that encourages investment. Since the initial development of oil and gas projects, Azerbaijan has demonstrated itself as a stable, innovative, and attractive country for business investment.

Additionally, Azerbaijan’s location in the Middle Corridor makes it a strategic gateway for supplying reliable and clean energy resources to markets in Türkiye, Europe, and beyond. Another important criterion is the talent pool. Azerbaijan has a highly educated and skilled workforce, which is a significant advantage from an investment perspective. Overall, Azerbaijan meets all the essential requirements and stands out as a strategically important market for ACWA Power.

-How do you assess the potential of our country in the field of renewable energy and the conditions created in our country for the development of this area?

-As I mentioned, Azerbaijan stands out in terms of regulatory support and leadership, welcoming both local and foreign investors. Regarding renewable energy potential, Azerbaijan is a developing country committed to diversifying its economy, attracting new business, and expanding its renewable sector.

The potential of the country in terms of natural resources, development of these environmental and renewable projects. Azerbaijan is rich in terms of natural resources in addition to oil and gas, but on the wind and solar, there is abundant undeveloped projects that can be developed.

-At what stage is the construction of the Khizi-Absheron wind plant? When will the main turbines be installed? Is there an estimated completion date of the plant?

-Construction has begun on our 240 MW Absheron-Khızı wind power project. We have nearly completed the engineering studies, and procurement is finalized. All key components, including the substation, turbines, towers, and blades, are either in transit or arriving in Baku, with the first blades recently reaching the Baku shipyard. The next phase involves erecting the wind towers, with the foundations at the Absheron site nearly finished. Weather permitting, we’ll soon begin installing the first wind tower in Absheron.

The Khızı site, with a capacity of 162.5 MW, is also being prepared for construction activities. By August next year, we anticipate delivering electricity to the Azerbaijan grid, and by November, all 240 MW will be operational, supplying Azerbaijan with sustainable, green energy.

-At what stage is the implementation of the Caspian Sea Desalination Project in Azerbaijan?

-The Caspian Sea desalination project is a vital initiative for Azerbaijan, designated as a strategic priority by President Ilham Aliyev. With 70% of Azerbaijan’s water supply currently sourced from neighboring countries, and the added pressure of climate change on regional water resources, this project is essential for the country's water security.

As the world’s largest developer of sustainable and innovative desalination projects, ACWA Power is a natural fit for this initiative. We have been diligently preparing for it, which will be distinctive in Azerbaijan as the country’s first public-private partnership project. The bid submission deadline is set for November 1st, and we are focused on finalizing our studies, demonstrating our strong commitment to this project.

- Hosting such event in a country that produces oil and gas is demonstrate its commitment to addressing environmental issues. What are your expectations of COP29 this year?

- We are very much excited to be COP29 partner for water and energy. ACWA Power's mission and current business activities very much overlaps with the COP29 initiatives agenda. Water, renewable and sustainable energy, clean energy to address climate change and another big aspect to enable this transition is finance. ACWA Power is one of the biggest solution provider and investor in the Global South, Central Asia, Middle East, North and South Africa, Gulf region and also on the Southeast Asia.

We are in every aspect develop water and energy solutions, innovations and bring in finance and to make this, you know, investment. And this is one of the biggest enablers of addressing the challenges with climate change.

-Do you plan to develop your activities in Azerbaijan in the future?

-Yes, as I mentioned, Azerbaijan is a highly strategic country for ACWA Power. We are keen to partner with Azerbaijan in achieving its green energy targets as outlined by President Ilham Aliyev, aiming for over 30% of the country's energy to come from renewable sources by 2030.

This aligns with ACWA Power's commitment to renewable energy, hydrogen, and other technologies supporting the energy transition in this region, including Azerbaijan. We are eager to develop more projects and will actively explore further opportunities in Azerbaijan.

Another key factor in ACWA Power's investment strategy is the strong government-to-government relations between the leadership of Azerbaijan and Saudi Arabia. This ongoing dialogue and mutual interest in enhancing relations contribute significantly to fostering further collaboration and investment between ACWA Power and Azerbaijan.