Azerbaijan and Saudi Arabia – Leaders in Renewable Energy Collaboration

Azerbaijan and Saudi Arabia

The economic partnership between Azerbaijan and Saudi Arabia has undergone a remarkable transformation in recent years, transcending the boundaries of conventional oil and gas industries to embrace the realm of renewable energy. This expansion marks a significant milestone in their bilateral relations, reflecting a shared commitment to addressing global climate challenges and fostering sustainable development.

The forthcoming COP29 event, to be hosted by Azerbaijan, serves as a testament to the mutual interest of both nations in renewable energy production and the advancement of sustainable energy sectors. This joint commitment underscores their dedication to tackling environmental issues on a global scale, positioning them as leaders in the transition towards a greener future.

At the forefront of this collaborative effort stands ACWA Power, a prominent Saudi Arabian company specializing in renewable energy. ACWA Power’s involvement in Azerbaijan includes the construction of a groundbreaking 240 MW wind power plant, a project born out of a Memorandum of Understanding signed between Azerbaijan’s Ministry of Energy and ACWA Power in 2022. This venture signifies a significant step forward in offshore wind energy cooperation between the two nations.

The commencement ceremony for the “Khizi-Absheron” Wind Power Plant project, attended by high-profile dignitaries including the President of Azerbaijan and Saudi Arabia’s Minister of Energy, marks the beginning of a transformative journey towards renewable energy dominance in Azerbaijan. Upon completion in 2025, this plant will stand as a beacon of sustainability, capable of producing one billion kilowatt-hours of electricity annually while significantly reducing carbon emissions and preserving natural resources.

However, the collaboration between Azerbaijan and Saudi Arabia extends beyond energy production. In April 2024, discussions between Azerbaijan’s Minister of Economy, Mikayil Jabbarov, and Amin Nasser, President, and CEO of Saudi Aramco, explored investment opportunities in Azerbaijan’s energy sector and potential joint ventures. This dialogue underscores the depth of economic cooperation between the two nations, paving the way for future collaborations.

Furthermore, agreements on green fertilizers and renewable energy projects between Azerbaijan’s State Oil Company (SOCAR) and ACWA Power underscore a shared commitment to sustainable development. Collaborative efforts under the Southern Gas Corridor Consultative Council aim to harness wind, solar, and green hydrogen projects in Azerbaijan, aligning with SOCAR’s ambitious targets to increase renewable energy sources in electricity generation capacity to 30 percent by 2030.

Looking ahead, Azerbaijan and Saudi Arabia envision a future marked by innovative ventures such as wind power and seawater desalination projects. These initiatives reflect their long-term commitment to environmental stewardship and economic prosperity, setting a precedent for sustainable development on a global scale.

In parallel with economic endeavors, the Azerbaijan-Saudi Arabia Joint Business Council serves as a platform for fostering economic ties and exploring investment prospects within both nations. Established in December 2022, the council facilitates direct ties between business communities, organizes mutual visits, and amplifies the contribution of SMEs to investment promotion, strengthening the foundation of bilateral cooperation.

Moreover, beyond economic realms, Azerbaijan and Saudi Arabia share deep-rooted cultural and religious ties, underpinning their comprehensive partnership. From their joint participation in the OPEC+ format to the burgeoning tourism links between the two nations, their collaboration spans diverse domains, rooted in shared values and heritage.

As Azerbaijan and Saudi Arabia deepen their alliance, they reaffirm their commitment to mutual prosperity and solidarity within the broader Muslim community and beyond. The enduring bond between these nations serves as a beacon of hope for sustainable development and cooperation in an ever-changing world, embodying the spirit of progress and partnership.