ACWA Power signs an agreement with EIG, one of the world’s largest infrastructure investment companies. Their commitment to working with ACWA Power demonstrates confidence in the company’s strong position in the energy, water and green hydrogen sectors, and we look forward to collaborating in these areas.
Azerbaijan Wind Power Project
ACWA Power has also signed project finance agreements worth a total of $246 million with the European Bank for Reconstruction and Development (EBRD) and the OPEC Fund for International Development (the OPEC Fund) for the development of awind power 240 MW in Azerbaijan. These agreements are subject to the fulfillment of certain conditions precedent.
This is the first independent wind power project based on foreign investment in the Republic of Azerbaijan, structured as a public-private partnership (PPP) with a total investment cost of $347 million. The national power company Azerenerji is the sole energy purchaser for the project, which, once completed, is expected to power nearly 300,000 homes, save 220 million cubic meters of natural gas and reduce carbon emissions by more than 400,000 tons a year.
Azerbaijan’s Renewable Energy Goal
Commenting on the announcement, Marco Arcelli added: “ACWA Power is excited to play a key role in helping Azerbaijan achieve its goal of covering 30% of its energy needs with renewable sources by 2030. We are deeply grateful to our financial partners, the European Bank for Reconstruction and Development and the OPEC Fund for International Development, for their unwavering support in making this vision a reality.”
The OPEC Fund is proud to be a key partner in the Khizi-Absheron wind power project, which will mark a turning point in Azerbaijan’s energy landscape by promoting foreign investment and private sector financing for a renewable public-private partnership project. With our support, we aim to catalyze clean energy production and a diversified energy future for Azerbaijan. – Abdulhamid Alkhalifa, Managing Director, OPEC Fund
Nandita Parshad, Managing Director of EBRD’s Sustainable Infrastructure Group, added: “We are proud to finance this emblematic project for Azerbaijan’s energy transition. Last year, at the same location, we signed a Memorandum of Understanding with our long-standing partner ACWA Power, committing us to renewable energy, green hydrogen and green desalination projects in our regions. I am very pleased that with this signing, we have already achieved nearly 1.5 GW of this promise to go from megawatts to gigawatts for renewable energy in the EBRD region. We are grateful to ACWA Power and the OPEC Fund for their shared commitment to climate action.”
ACWA Power’s past involvement in Azerbaijan
ACWA Power has already worked with EBRD and the OPEC Fund to finance several projects in Central Asia, the Middle East and Africa. At the 2022 edition of the Future Investment Forum (FII), ACWA Power and EBRD signed a memorandum of understanding to finance sustainable infrastructure projects in Uzbekistan, Azerbaijan and Egypt.
ACWA Power’s commitment to leading and facilitating the energy transition has led it to collaborate with Azerbaijan on several clean energy projects in recent years. In addition to this 240 MW power plant, ACWA Power has partnered with Azerbaijan’s Ministry of Energy to develop 1.5 GW of offshore wind power and 1 GW of onshore wind power, as well as a battery energy storage system (BESS). ACWA Power is also working with the “State Oil Company of the Republic of Azerbaijan” (SOCAR) to explore collaboration and exploration in the fields of renewable energy and green hydrogen.
