The company said the agreement with the Port of Baku marked Malaysia’s first-ever commercial green energy project integrating solar power with a battery energy storage system (BESS).

A joint venture involving Citaglobal’s wholly-owned subsidiary Citaglobal Renewable Energy Sdn Bhd and Tiza Green Energy LLC, a subsidiary of Tiza Global Azerbaijan LLC, will lead the project.

The project will be backed by a 21-year power purchase agreement that will guarantee a fixed tariff throughout that period, providing the port with predictable energy costs and ensuring a stable and sustainable supply of energy for the years ahead.

“While the project’s capacity may be modest, it signifies a momentous leap forward in Azerbaijan’s renewable energy journey. It presents an adaptable model that can be replicated across the country to bolster energy security and advance sustainability goals, paving the way for a greener, more efficient future for Azerbaijan.

“This initiative is poised to yield considerable long-term cost savings while drastically reducing greenhouse gas emissions.

“Upon full implementation, the port’s entire annual electricity consumption will be sourced from green energy, solidifying its commitment to sustainable practices,” Citaglobal said in a statement.

The first phase of the project involves the installation of rooftop solar PV panels, followed by more expansive ground-mounted systems and the deployment of Citaglobal’s BESS.

The deal was signed in Azerbaijan by Citaglobal executive chairman and president Norza Zakaria and Port of Baku director-general Taleh Mahammad Ziyadov.

Norza said the tariff rate under this project would be competitive, representing a sustainable and cost-effective renewable energy model that maximised the use of clean energy on-site.

“This agreement marks a major milestone in advancing Azerbaijan’s renewable energy landscape with an innovative solution that seamlessly integrates solar power and BESS technology,” Norza said.

Taleh said the port’s goal was to reach zero carbon emissions by 2036 and expressed confidence that this partnership was a key step in that direction.

The signing was witnessed by natural resources and environment sustainability secretary-general Ching Thoo Kim and the Malaysian ambassador to Azerbaijan, Ahmad Kamrizamil Riza, during COP29’s green energy day.