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Akbar Novruz

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Azerbaijan is poised to take a significant step forward in both renewable energy and water infrastructure, as Saudi Arabia’s ACWA Power prepares to implement a large-scale seawater desalination project alongside its expanding renewable energy portfolio in the country. The announcement comes amid broader global and regional efforts to diversify energy sources and enhance climate resilience.

The planned desalination facility, with a capacity of 300,000 cubic meters per day, represents one of the largest water infrastructure projects in Azerbaijan’s history and will be built near Baku at the Sumgayit Chemical Industrial Park. The project was awarded to ACWA Power following a public-private partnership (PPP) tender, and a Public-Private Partnership Agreement valued at approximately USD 400 million has already been signed with the Azerbaijan State Water Resources Agency. The agreement covers the design, construction, financing, ownership, operation, and maintenance of the facility over a 27.5-year period, after which it will be transferred to the state agency.

This initiative comes at a time when Azerbaijan is placing increased emphasis on water resource management and water security, recognizing that a significant share of the country’s water resources originates outside its borders. Desalination helps address growing demand in urban and industrial centers such as Baku and the surrounding Absheron Peninsula, which rely heavily on external water sources.

Officials and experts have highlighted the strategic importance of diversifying water supply to complement traditional freshwater sources, especially in the face of climate change and increasing urbanization. By securing a reliable, high-capacity source of drinking water, the project is expected to significantly enhance water resilience for households, industry, and public services.

ACWA Power did not arrive in Azerbaijan with its desalination plans alone. The company has already established a strong presence in the country through its 240 MW Khizi-Absheron Wind Power Plant, which was inaugurated recently and marks the largest renewable energy project of its kind in Azerbaijan and the wider Caucasus region. That project, co-financed by international lenders including the OPEC Fund for International Development and the European Bank for Reconstruction and Development, illustrates how foreign direct investment can complement national energy diversification goals.

The wind plant, divided between Absheron and Khizi with a total of 37 turbines and producing enough clean electricity to power over 300,000 households, will also reduce natural gas consumption and cut hundreds of thousands of tons of carbon emissions annually once fully operational.

ACWA Power’s leadership sees Azerbaijan as more than just a project location. Selim Guven, Head of ACWA Power for Türkiye and Azerbaijan, emphasized that the desertion plant is part of a broader cooperation strategy, noting that Azerbaijan’s strong energy potential and commitment to renewables create favorable conditions for long-term investment. Guven has also mentioned plans to develop energy export interconnection lines that could enable wind and solar power capacity in Azerbaijan to reach markets such as Europe, enhancing regional energy integration.

The inland desalination project is expected to help Azerbaijan not only address domestic water needs but also increase resilience against climate variability and manage long-term resource scarcity. It aligns with national water strategies that prioritize efficient resource use and support sustainable development goals.

Internationally, ACWA Power’s involvement underscores the growing trend of integrating energy transition projects with critical water infrastructure, which is increasingly seen as a key feature of climate-resilient development. The company, renowned as one of the largest private water desalination operators globally, brings extensive experience in deploying large-scale water technology solutions in multiple regions worldwide.

For Azerbaijan, the combined momentum of renewable energy expansion and the deployment of advanced water infrastructure signals a maturing sustainability landscape.

While renewable generation directly supports reductions in fossil fuel dependence, the desalination plant addresses another pillar of modern infrastructure: reliable access to freshwater. By attracting major foreign investment and leveraging public-private partnership frameworks, the country is building foundations for a more resilient and diversified economy.