Power plant developer ACWA Power and the government of Azerbaijan have signed an agreement to potentially deploy a battery energy storage system (BESS) in the central Asian country. Contact online >>
Power plant developer ACWA Power and the government of Azerbaijan have signed an agreement to potentially deploy a battery energy storage system (BESS) in the central Asian country.
The Azerbaijan Ministry of Energy said 3 February that a Memorandum of Understanding (MoU) had been signed "in relation to development of a Battery Energy Storage System in the Republic of Azerbaijan".
This was alongside two significant wind project implementation agreements signed between the two parties at the 9th Southern Gas Corridor Advisory Council and first Green Energy Advisory Council meeting held last week in Baku, the Azerbaijani capital.
With ACWA Power already working on a 240MW wind power plant in the country, the implementation deals announced were for a new offshore wind project with up to 1.5GW capacity and an onshore wind project with up to 1GW capacity.
No further details were announced regarding the possible size and capacity of the battery storage project, but as an MoU it is understood to be at a much earlier stage of conception than the wind power projects.
ACWA Power is a developer, owner and operator of both conventional thermal and renewable energy assets, as well as desalination facilities. It is currently developing what is thought to be the Middle East''s biggest battery storage project to date, a 1,200MWh – 1,300MWh system planned at the Red Sea Project, an off-grid resort off the coast of Saudi Arabia.
"From today onwards, our partnership with ACWA Power is expanding through projects on wind power plants with a total capacity of 2.5GW and the creation of battery energy storage systems for the first time in our country," Minister of Energy Parviz Shahbazov said.
"These projects are further contributions to the implementation of the state policy on the development of Azerbaijan as a country of ''green growth'' and supplier of green energy."
The two co-located events at which the agreements were signed also played host to the signing of agreements between the Azerbaijan government and European Union (EU) to cooperate on energy security and transition to renewables.
That included planning for the opening of the Southern Gas Corridor which would take natural gas from the Middle East into Europe, reducing the latter''s dependency on Russian imports. Meanwhile at the first meeting of the Green Energy Advisory Council, the EU and Azerbaijan agreed to expand existing cooperative efforts in areas like renewable energy and green hydrogen.
For Saudi Arabia-headquartered ACWA Power, it''s the latest in a series of recent deals by which the company, developer of some 44GW+ of generation assets in 12 countries since its founding in 2004, has struck up high-level partnerships with governments.
In late November, ACWA Power signed an MoU with an Indonesian state-owned company to investigate potential for green hydrogen and energy storage developments. PT Perusahaan Listrik Negara (PLN) is Indonesia''s biggest power generation company and its exclusive purchaser of energy from independent power producer (IPP) assets.
A month later, Uzbekistan''s government signed power purchase agreement (PPA) and investment deals with ACWA Power for the development of Kungrad, a 1.5GW wind project in the region of Karakalpakstan. That would comprise three separate 500MW wind power plants, and each would incorporate a 100MW BESS, according to ACWA Power, for a project requiring total investment of around US$2.4 billion.
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Azerbaijan continues to maintain an upward trajectory towards a cleaner, more sustainable future under the guidance of its wise and forward-thinking leadership. At ACWA Power we greatly value our relationship with our Azerbaijani partners and with the signing of the new agreements today, we are excited to expand our role in accelerating the nation''s energy transformation
Meanwhile, on November 18, Azerbaijan''s Energy Minister, Parviz Shahbazov, formalised a partnership in renewable energy with the Chinese electrical engineering firm TBEA Co., Ltd.
The agreement encompasses collaboration in several key areas, including the supply of ultra-high voltage direct current (DC) and alternating current (AC) products, the manufacture of advanced energy equipment, the development of a data centre, and involvement in regional green energy connectivity initiatives.
TBEA Co., Ltd., previously known as Tebian Electric Apparatus, is a leading Chinese manufacturer of power transformers and electrical equipment. It is also a key player in power transmission projects. Alongside its competitors Tianwei Baobian Electric (TWBB) and XD Group, TBEA is recognised as one of China''s largest producers of transformers.
The host country for the upcoming UN COP29 climate summit skipped over the transition from fossil fuels in a list of priorities for the gathering in Azerbaijan, focusing instead on energy storage, waste methane and war.
The "action agenda" of global initiatives and pledges that Azerbaijan plans to put forward in Baku in November includes a sixfold increase in battery storage capacity, sweeping expansions to electricity networks and cuts in emissions from methane from organic waste. It also includes a call for action plans for tourism and water.
But it did not cover plans for the end of fossil fuel use in energy systems that was set down last year''s landmark pact in Dubai, where almost 200 countries struck an agreement then described as UN leadership as the "beginning of the end of the fossil fuel era". The burning of fossil fuels is the single biggest contributor to climate change.
The president-designate for COP29, Mukhtar Babayev, is the minister of ecology in Azerbaijan and a former vice-president at state-owned oil and gas company Socar.
In his letter on Tuesday to the states and other organisations due to take part in the summit, Babayev cited a caution from 12th century Persian poet Nizami Ganjavi, that "humanity will destroy itself" unless "harmony and consent" reign between people and nature.
He also referenced the climate challenges faced by Azeris at home, such as extreme heat and water scarcity, where the Caspian Sea has been shrinking, as well as the country''s "abundant" wind and solar potential.
He proposed that countries adopt targets for cutting the production of methane as a byproduct of waste and food systems. Waste is only the third most common man-made source of methane, after the energy and agricultural sectors, according to the UN.
He steered clear of suggesting that Azerbaijan should reassess the dominant role in its own economy of oil and gas exports, which it has said allows it to help meet Europe''s energy demands.
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