ACWA Power, a international developer and operator of power generation and water desalination projects, announced a series of significant agreements at the Future Investment Initiative (FII7) in Riyadh, with a total value of $746 million.
The cornerstone of these agreements is a $500 million Heads of Terms deal with institutional investor EIG. ACWA Power has also secured an aggregate project financing amount of $246 million through a collaboration with the European Bank for Reconstruction & Development (EBRD) and the OPEC Fund for International Development. These funds will be dedicated to the development of a 240MW wind power project in Azerbaijan.
The wind project, which represents a groundbreaking development for the Republic of Azerbaijan, is structured as a public-private partnership (PPP) with a total investment cost of $347 million. Notably, it marks the first foreign investment-based independent wind power project in the country.
ACWA Power's Chief Executive, Marco Arcelli, expressed his enthusiasm for the role the company is playing in helping Azerbaijan meet its ambitious target of sourcing 30% of its energy needs from renewable sources by 2030. He acknowledged the unwavering support of their financing partners, the European Bank for Reconstruction & Development and the OPEC Fund for International Development.
The national electrical power company of Azerbaijan, Azerenerji, is set to be the sole offtaker for the project, underlining the collaborative efforts to promote sustainable energy sources.
Additionally, ACWA Power and EIG have committed to joint cooperation in a range of energy-related projects, including power generation, water desalination, green hydrogen, and green ammonia initiatives. Their focus will extend to investments in projects in Gulf countries and Uzbekistan.
Marco Arcelli stated, “This is a landmark agreement with EIG, one of the world's largest infrastructure investment firms. Their commitment to working with ACWA Power is a sign of confidence in the company's strong position in power, water, and green hydrogen, and we look forward to collaborating in these areas.”