March 21 -- Saudi developer ACWA Power has reached an agreement with Kazakhstan’s Ministry of Energy and Samruk-Kazyna, the sovereign wealth fund of Kazakhstan, to develop a 1GW wind energy and battery storage project in the country.
According to the company, this deal marks its entry into Kazakhstan, with an initial investment of $1.5 billion to support national climate action, renewables integration and sustainable development.
It is intended to successfully decarbonize fossil fuel-based power generation following its scheduled completion in 2027, the statement reads.
Furthermore, ACWA Power said the partnership was formalized 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 HRH 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, ACWA Power said, noting that sustainability is a key priority, and the focus is to meet 50 percent of its energy requirements via alternative and green energy technologies by 2050. The country is fast tracking a number of clean energy initiatives to achieve set targets.
“The signing today once again exemplifies our commitment to partnering nations in their diversification endeavors and enabling sustainable progress. 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,” Mohammad Abunayyan, ACWA Power Chairman, said.
ACWA Power’s involvement will represent the biggest Saudi investment in Kazakhstan’s power sector to date, the company stressed in its statement, adding that wind turbines and battery storage are sure to unlock new value and help ensure the involved parties capitalize on emissions abatement and energy transition opportunities.