ACWA Power has announced the successful financial close of senior debt facilities worth USD $238 million to finance a key renewable energy project in the Caucasus region.
The European Bank for Reconstruction and Development (EBRD) and the OPEC Fund for International Development have provided financing facilities of USD $238 million in total for the Absheron-Khizi 240MW Wind Farm in Azerbaijan.
An equity bridge financing of USD $120 million, based on shariah compliant structure, was secured from First Abu Dhabi Bank (FAB) in December 2023.
The Absheron-Khizi plant is the first international investment-based independent wind power project in Azerbaijan, and the largest in the Caucasus region.
“This project reflects what can be achieved through strategic collaborations between the private and public sector to mobilise finance that accelerates climate action”, said Marco Arcelli, CEO of ACWA Power. “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.”
The project is expected to commence operations in the first half of 2026 and involves a 25-year power purchase agreement with Azerenerji, the national electrical power company. When complete, the project is expected to provide nearly 300,000 households with renewable power and mitigate the impact of 400,000 tonnes of carbon emissions annually.