SOCAR signs MoU with Masdar and ACWA Power for offshore wind projects in Caspian Sea

The State Oil Company of Azerbaijan Republic (SOCAR) on Friday signed a memorandum of understanding (MoU) with Masdar of the United Arab Emirates and ACWA Power of Saudi Arabia to develop a network of offshore wind farms with a total capacity of 3.5 gigawatts in the Azerbaijani sector of the Caspian Sea.

The agreement was signed by SOCAR President Rovshan Najaf, Masdar CEO Mohamed Jameel Al Ramahi, and ACWA Power CEO Marco Arcelli, according to a statement from SOCAR.

The project envisions the phased construction and commissioning of offshore wind power facilities, marking the first large-scale offshore wind initiative in Azerbaijan’s history. The planned network aims to contribute significantly to Azerbaijan’s renewable energy goals and reduce the country's carbon footprint.

The collaboration comes as part of Azerbaijan’s broader strategy to diversify its energy mix and expand its green energy sector, aligning with the nation’s commitments under international climate agreements. The partnership with Masdar and ACWA Power, both experienced players in renewable energy projects, is expected to bring significant investment and technological expertise to the region.

Further details on the timeline and investment volumes were not immediately disclosed.

ACWA Power entered the Azerbaijani market in 2019 and is currently developing a 240 MW wind power plant, with an estimated investment of $286 million. Meanwhile, Masdar, active in Azerbaijan since 2020, recently completed construction of the 230 MW Garadagh solar power plant, which began operations in October.

The partnership underscores Azerbaijan’s commitment to expanding its renewable energy portfolio and reducing its reliance on fossil fuels, aligning with global trends towards sustainable development.