Acwa Power is cementing its foothold in Central Asia: The renewables giant signed a USD 400 mn public-private partnership (PPP) agreement with the Azerbaijani government to develop the country’s first large-scale Caspian Sea reverse-osmosis desalination plant, according to a disclosure.

Single-sponsor play: The agreement was inked with the Azerbaijan State Water Resources Agency and covers the full stack of design, construction, financing, ownership, operation, and maintenance. Acwa holds 100% of the project company, Caspian Sea Azerbaijan Project Company.

REMEMBER- Acwa was awarded the contract earlier this year in January, where Turkish firm IC İçtaş Inşaat was involved too.

Not the first Azeri venture: Acwa inked a cooperation agreement with Azerbaijan in February 2023 to develop a 1.5 GW offshore wind energy project as part of a larger 2.5 GW wind farm initiative that will also see the development of the country’s first battery storage systems. The company is also on track to bring the 240 MW Khizi-Absheron Wind Power Plant online by next year.

Central Asia is a crucial gateway for trade, and Acwa Power is planning on a strong presence there. The company has significant portfolios in Azerbaijan, Uzbekistan, and Kazakhstan and has earmarked some USD 15 bn for decarbonization projects in the region, CEO Marco Arcelli said last year.

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