Renewable Energy

Acwa Power seals $746m green energy deals

By Pramod Kumar

October 27, 2023, 5:11 AM

Acwa Power signed funding agreements with EBRD and the Opec Fund to develop a 240-MW wind power project in Azerbaijan

Saudi renewable energy company Acwa Power has signed agreements worth $746 million to develop renewable and green hydrogen projects globally.

The Riyadh-based company signed a $500 million heads of terms agreement with EIG, a US-based institutional investor in the global energy and infrastructure sectors, on the sidelines of the Future Investment Initiative (FII7) in Riyadh.

The two companies will cooperate on power generation, water desalination, green hydrogen and green ammonia projects, specifically focusing on investing in the Gulf countries and Uzbekistan.

Acwa Power also signed funding agreements worth $246 million with the European Bank for Reconstruction & Development (EBRD) and the Opec Fund for International Development to develop a 240-megawatt (MW) wind power project in Azerbaijan.

The first foreign investment-based independent wind power project in Azerbaijan is a public-private partnership being built at a total cost of $347 million.

The national electrical power company Azerenerji is the sole offtaker for the project, which, once completed, is expected to power nearly 300,000 households, save 220 million cubic metres of natural gas and reduce carbon emissions by more than 400,000 tonnes annually.

Acwa Power has previously worked with EBRD and the Opec Fund on financing multiple projects across central Asia, the Middle East and Africa.

In addition, the Saudi-listed company has partnered with the Azerbaijan energy ministry to develop 1.5 GW of offshore wind and 1 GW of onshore wind, as well as the development of a battery energy storage system.

The company is also working with the State Oil Company of Azerbaijan Republic (Socar) to explore collaboration and exploration in renewable energy and green hydrogen.

Earlier this month, Acwa Power said it had achieved the “largest number of financial closures in its history” with projects worth more than $14 billion in the past 12 months.

The company currently has 75 assets in various development stages and operations in the Middle East, Africa, central and southeast Asia.