The energy landscape of Central Asia and the Caucasus is currently undergoing a fundamental transformation, evolving from a traditional resource hub into a key element of the global green economy. At the forefront of this change is the strategic partnership between Azerbaijan and Uzbekistan, which is laying the foundation for the creation of a unified energy corridor capable of connecting the potential of the Caspian region with the growing needs of the European market.
In an exclusive interview with Report, Abid Malik, regional president for Central Asia at Acwa, discussed how the integration of wind energy capacity in the two regions, the development of hydrogen technologies, and the creation of local production chains are shaping a new energy map for Eurasia.
Report presents the interview:
- Mr. Malik, given that your area of responsibility includes both Central Asia and the Caucasus, how do you assess Azerbaijan's role in the formation of a unified green energy corridor? Is Acwa exploring projects that could physically or commercially connect your extensive wind energy portfolio in Uzbekistan with your operations in Azerbaijan?
- We are implementing projects in both Uzbekistan and Azerbaijan. We are working closely with Azerbaijani Energy Minister Parviz Shahbazov and other relevant agencies on exporting electricity from Azerbaijan and Georgia to European markets. Work is already well underway.
The Azerbaijani government, together with a relevant consortium, is currently preparing feasibility studies. Following the completion of these studies, we intend to continue our active collaboration to analyze investment prospects and assist Azerbaijan in implementing this project.
- You have repeatedly emphasized the importance of localization in your regional projects. Following the commissioning of the 240 MW Khizi-Absheron wind energy project, is the possibility of establishing regional service hubs or component manufacturing sites in Azerbaijan capable of supporting Acwa projects throughout the Caspian and Central Asian regions being considered?
- Regardless of the region or country in which we operate, our key goal remains facilitating the professional growth of the country's youth, as well as supporting domestic manufacturers, service companies, and contractors. When we meet contractors in any of the countries where we operate-provided their proposals are compelling, cost-competitive, and meet quality standards-we invariably engage them, including in cases where they express a willingness to work abroad.
Therefore, there are absolutely no barriers for us in attracting Azerbaijani, Uzbek, or Turkish contractors in these regions. The key criteria are cost competitiveness, reliability, and the provision of a high level of service.
- Following the launch of Acwa's hydrogen initiatives in Uzbekistan, how soon can we expect a similar pilot project to emerge in Azerbaijan? Do you believe that Azerbaijan's existing pipeline infrastructure provides it with a strategic advantage in the regional competition for hydrogen supplies to the EU?
- We are convinced that hydrogen is the energy carrier of the future. This is why we are building one of the world's largest green hydrogen production facilities as part of the NEOM project.
Every country, including Azerbaijan, is currently analyzing the prospects for using green hydrogen in the domestic market and for its potential export. In this regard, we continue to engage with Azerbaijan and other countries, exploring investment opportunities in hydrogen projects around the world, including Azerbaijan.
- Azerbaijan has impressive technical potential in offshore wind energy in the Caspian Sea – over 150 GW. Does Acwa plan to participate in future tenders for offshore zones?
- We and Azerbaijan have already signed a memorandum of understanding aimed at developing offshore wind energy, so the answer is definitely yes. We intend to collaborate with the Azerbaijani government to assess the technical and economic feasibility of such projects.
We are aware that the potential of offshore wind energy could eventually be harnessed to supply electricity to the European market.
