ACWA Power raises $300 mln from int'l investors for wind power plant projects in Azerbaijan and Uzbekistan
BAKU. Nov 5 (Interfax) - Saudi-Arabia's ACWA Power has raised a loan of $238 million to build the 240 MW Khizi-Absheron wind power plant in Azerbaijan, the company said on its website.
It said the loan agreement was signed with the European Bank for Reconstruction and Development and the OPEC International Fund during the eighth Future Investment Initiative forum in Riyadh from October 29 to 31.
ACWA Power also closed financing agreements for $62 million with a consortium of the EBRD, German Investment Corporation (DEG) and France's Proparco for the 100 MW Nukus-1 wind power project in Uzbekistan. This plant, overall cost $118 million, should be operating commercially by the end of 2025.
The ground breaking ceremony for Khizi-Absheron wind farm was held in January 2022. The project involves the installation of 40 wind turbines with capacity of 6 MW each, including 17 in Perekeshkul, Absheron district and 23 in Sitalchay, Khizi district. The wind farm will be able to generate about 1 billion kWh of electricity annually.
The project was initially estimated at $348 million. However, ACWA Power says on its website that the cost of the project, which will be fully pre-financed by the Saudi company, is $286 million. It also says the wind farm will save about 220 million cubic meters of natural gas per year.
ACWA Power said earlier that it planned to commission the Khizi-Absheron wind farm in the fourth quarter of 2025. The plant will provide renewable energy to nearly 300,000 households while reducing carbon emissions by approximately 400,000 tonnes annually. The project is being carried out on the build-own-operate principle.
The Azerbaijani Energy Ministry and ACWA Power signed an implementation agreement related to a 200 MW battery energy storage system in Baku at the beginning of May. In addition, a framework agreement was signed relating to a 200 MW onshore wind power project.
Azerbaijan and ACWA Power are currently discussing joint renewable energy projects onshore and offshore with total capacity of 2.5 GW.