ACWA Power, a leader in energy transition and first mover into green hydrogen, has announced the successful financial close of senior debt facilities worth US$238 million to finance a key renewable energy project in the Caucasus.

European Bank for Reconstruction and Development (EBRD) and the OPEC Fund for International Development (the OPEC Fund) have provided senior debt financing facilities of US$238 million in total for the Absheron-Khizi 240MW Wind Farm in the Republic of Azerbaijan.

Additionally, an equity bridge financing facility of US$120 million, based on shariah compliant structure, was secured from First Abu Dhabi Bank (FAB) in December 2023.

Commenting on the announcement, Marco Arcelli, Chief Executive Officer of ACWA Power, said: “This project reflects what can be achieved through strategic collaborations between the private and public sector to mobilise finance that accelerates climate action.

"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 Absheron-Khizi plant is the first international investment-based independent wind power project in Azerbaijan, and the largest in the Caucasus region.

The project is expected to commence operations in the first half of 2026 and involves a 25-year power purchase agreement with the national electrical power company, Azerenerji.

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.