Saudi Arabia Signs Renewable Energy Deal with Azerbaijan, Kazakhstan, Uzbekistan at COP29

Photo: Press service of the President of the Republic of Azerbaijan

Saudi Energy Minister Prince Abdulaziz bin Salman signed a joint program with the energy ministers of Azerbaijan, Uzbekistan, and Kazakhstan to strengthen cooperation in renewable energy development and transfer, The Caspian Post reports citing Saudi Gazette.

The agreement was signed on the sidelines of the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in the Azerbaijan capital, Baku, in the presence of the President of Azerbaijan, Ilham Aliyev, the President of Kazakhstan, Kassym Tokayev, and the President of Uzbekistan, Shavkat Mirziyoyev.

The executive program focuses on improving the efficiency of energy infrastructure and enhancing the integration of renewable energy projects into the national grids of the participating countries.

It also includes identifying and studying joint investment opportunities, enabling the four countries to develop regional electricity interconnection projects to support ACWA Power’s renewable energy generation and storage initiatives in the three countries and other initiatives of common interest.

This signing comes in implementation of the bilateral memoranda of understanding signed between Saudi Arabia and Kazakhstan on June 12, 2023, in Riyadh, and the two energy cooperation agreements with Azerbaijan signed on May 24, 2023, in Riyadh, and with Uzbekistan on August 17, 2022, in Jeddah.

Two strategic agreements were also signed between ACWA Power and a number of entities to support renewable energy projects in Uzbekistan and Azerbaijan.

The first agreement was signed with the Uzbek Ministry of Energy, aiming to develop battery energy storage systems (BESS) with a capacity of up to 2 GWh, to enhance the stability of the electricity grid.

The second agreement was with Azerbaijan’s SOCAR and Masdar to develop offshore wind energy projects with a capacity of up to 3.5 GW in the Caspian Sea, a first-of-its-kind initiative in Azerbaijan.

A comprehensive roadmap for cooperation in the energy fields between Saudi Arabia and Azerbaijan was also signed, aiming to develop an action plan and set a timetable for priority projects, and facilitate procedures to achieve common goals.

The roadmap includes cooperation in several vital areas, including renewable energy, carbon capture, utilization and storage, clean hydrogen, energy efficiency, developing the sustainability of supply chains and enhancing their flexibility, in addition to the trade of refined products and petrochemicals.

The initiative also includes cooperation in electricity generation, regional interconnection, energy storage, and identifying investment opportunities in renewable energy projects, including regional interconnection projects.