ACWA Power secures $238m for key Azerbaijan wind farm project 

Image: ACWA Power

Saudi’s ACWA Power announced the successful financial close of senior debt facilities worth $238m to fund the Absheron-Khizi 240MW Wind Farm project in Azerbaijan.

The senior debt financing package is provided by the European Bank for Reconstruction and Development (EBRD) and the OPEC Fund for International Development.

Additionally, in December 2023, ACWA Power secured a $120m equity bridge financing facility from First Abu Dhabi Bank (FAB), based on a Shariah-compliant structure.

This financial support will help fund the development of the Absheron-Khizi Wind Farm, which is set to be the first international investment-based independent wind power project in Azerbaijan and the largest of its kind in the Caucasus region.

Supporting Azerbaijan’s clean energy transition

The Absheron-Khizi wind farm is a critical part of Azerbaijan’s ongoing shift from natural gas to renewable energy. The project involves a 25-year power purchase agreement (PPA) with Azerenerji, Azerbaijan’s national electricity utility.

Once operational, the wind farm is expected to generate enough electricity to power nearly 300,000 households and significantly reduce carbon emissions by preventing the release of approximately 400,000 tonnes of CO2 annually.

Marco Arcelli, CEO of ACWA Power, commented on the importance of the project, saying, “This project reflects what can be achieved through strategic collaborations between the private and public sector to mobilise finance that accelerates climate action.

“We are proud to be supporting Azerbaijan’s shift from natural gas to renewable energy in line with the nation’s clean energy ambitions, and hope that this is the first of many similar projects.”

Strategic partnerships for sustainable growth

The Absheron-Khizi wind farm is expected to begin operations in the first half of 2026. The project not only represents a key investment in Azerbaijan’s clean energy infrastructure but also serves as a model for future renewable energy projects in the region.

The involvement of institutions like EBRD and the OPEC Fund demonstrates the strength of international financial partnerships in supporting large-scale renewable energy projects. These collaborations are vital to the realisation of the goals outlined in the Paris Agreement and other global climate initiatives.

The project further strengthens ACWA Power’s reputation as a first mover in green hydrogen, a sector it is investing heavily in as part of its broader strategy to lead the global energy transition. The company’s deep expertise in large-scale renewable energy projects, combined with its commitment to innovation, positions it well to continue playing a leading role in the development of sustainable energy solutions.

Expanding ACWA Power’s global footprint

The Absheron-Khizi Wind Farm project is an important milestone for ACWA Power, which has built a strong portfolio of renewable energy projects worldwide. As the largest private desalination company and a key player in the renewable energy sector, ACWA Power has successfully financed numerous projects across solar, wind, and water desalination, playing a pivotal role in addressing the world’s growing energy and water needs.

With projects spanning the Middle East, Asia, and Africa, ACWA Power continues to lead the charge in providing clean, sustainable energy solutions in markets with significant potential for renewable energy development. The company’s commitment to driving innovation, advancing regulatory collaboration, and mobilising finance for green energy solutions will be essential in meeting the global climate goals of the coming decades.

Once completed, the Absheron-Khizi Wind Farm will not only help diversify Azerbaijan’s energy mix but also contribute significantly to reducing the country’s carbon footprint.

It reflects a growing trend of investments in renewable energy across the Caucasus and other regions that are traditionally reliant on fossil fuels.

Read: ACWA Power secures $62m for renewable energy project in Uzbekistan