Acwa Power reached financial close for a USD 238 mn senior debt facility to finance the 240 MW Khizi-Absheron Wind Power Plant in Azerbaijan, Argaam reports, citing an emailed statement. A European Bank for Reconstruction and Development (EBRD) and OPEC Fund for International Development consortium contributed the funds for the debt facility.

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Getting their ducks in a row: Acwa broke ground on the project back in 2022, with a USD 300 mn investment ticket cited at the time. The project secured a USD 120 mn Shariah-compliant equity financing option from First Abu Dhabi Bank in December 2023, Argaam noted. Acwa had also said in October of last year that it had raised USD 246 mn in financing for the project from the EBRD and OPEC Fund.

More on the project: The wind farm is expected to come online in 1H 2026, when it is expected to supply clean energy to some 300k homes, offsetting 400k tons of CO2 emissions a year. Azerbaijan’s state-owned energy outfit, Azerenerji, represents the sole offtaker for the project via a 25-year power purchase agreement.

ALSO FROM ACWA POWER-

Acwa Power is “on track” to reach financial close on SAR 30 bn in financing, CEO Marco Arcelli told Al Arabiya on the sidelines of COP29 in Baku, Azerbaijan (watch, runtime: 0:53). The financing is slated for projects in Saudi Arabia and elsewhere. The firm is also eyeing a USD 7.1 bn capital increase by next year to support growth plans and has appointed financial advisors for the transaction.

Acwa Power is doubling down on its Azeri wind portfolio: The Tadawul-listed renewable energy player inked a cooperation agreement with Azerbaijan in February 2023 to develop a 1.5 GW offshore wind energy project as part of a larger 2.5 GW wind farm initiative that will also see the development of the country’s first battery storage systems. Later that year, Acwa Power and Azerbaijan’s Energy Ministry inked a roadmap agreement to develop a 200 MW onshore wind farm with battery storage facilities.

The renewables giant is focusing on Central Asia due to its strategic position as a gateway for trade. Acwa Power has significant portfolios in Azerbaijan, Uzbekistan, and Kazakhstan and has earmarked some USD 15 bn for decarbonization projects in the region, Arcelli said.

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