Saudi Arabia renewable major ACWA Power has signed a partnership agreement with the Kazakhstan’s Ministry of Energy and its sovereign wealth fund Samruk-Kazyna to lead and develop a 1GW wind energy and battery storage project within the Central Asian country.
ACWA Power said that the wind plus storage project marks its entry into Kazakhstan. The project will attract an initial investment of $1.5 billion to support national climate action, renewables integration, and sustainable development.
ACWA Power said that the project is intended to successfully decarbonise fossil fuel-based power generation following its scheduled completion in 2027.
The partnership was formalised with a head of terms agreement signed by Bolat Akchulakov, the Minister of Energy of the Republic of Kazakhstan; Almassadam Satkaliyev, the Chairman of the Board of Samruk-Kazyna, and Mohammad Abunayyan, the Chairman of ACWA Power; in the presence of Prince Abdulaziz bin Salman Al Saud, the Minister of Energy of the Kingdom of Saudi Arabia, who attended the signing ceremony.
The Kazakhstan 2050 Strategy which defines the course for long-term economic development is aimed at placing the nation among the top 30 global economies by 2050. The focus is to meet 50% of its energy requirements via alternative and green energy technologies by 2050.
Mohammad Abunayyan, ACWA Power Chairman, said, “Public private partnerships are indeed key to facilitating the energy transition reliably and responsibly. And given the Republic’s values and emphasis surrounding decarbonization, we are delighted to expand our operations into the Kazakhstani market and support its government in reaching essential renewable energy targets.”
ACWA Power said that its involvement will represent the biggest Saudi investment in Kazakhstan’s power sector to date, with wind turbines and battery storage sure to unlock new value and help ensure the involved parties capitalize on emissions abatement and energy transition opportunities.
Recently German renewable energy player Svevind Energy Group announced its plans to invest a massive $50 billion towards the development of a 20 GW green hydrogen project in Kazakhstan. The project is expected to produce 2 million tonnes of green hydrogen every year.