- Heads of Agreement signed with the Ministry of Energy and Samruk-Kazyna, the country’s sovereign wealth fund in the presence of HRH Prince Abdulaziz
- New partnership indicates ACWA Power’s market entry into Kazakhstan
Riyadh, Saudi Arabia – 02 March 2023: ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, has announced a ground-breaking partnership agreement with the Republic of Kazakhstan’s Ministry of Energy and Samruk-Kazyna, the sovereign wealth fund of Kazakhstan to lead and develop a 1GW wind energy and battery storage project within the Central Asian country.
The project marks ACWA Power’s entry into Kazakhstan, and with an initial investment of US$1.5 billion, aims to support national climate action, renewables integration, and sustainable development efforts through innovation and technology integration. It 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 H.E. 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 today.
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. Sustainability is a key priority, and the focus is to meet 50% 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 endeavours 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.
“This partnership would have not been possible without the guidance of our visionary leadership and HRH Prince Abdulaziz bin Salman Al Saud, Minister of Energy of the Kingdom of Saudi Arabia, and the trust and commitment of our partners from the Kazakhstan government and we look forward to building a long-term partnership,” he added.
ACWA Power’s 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.