OPEC Fund approves loan for wind power plant project in Azerbaijan

The OPEC Fund for International Development (the OPEC Fund) has approved a $50 million loan to ACWA Power Wind Azerbaijan Renewable Energy to support the construction of a 240 MW Khizi-Absheron wind power plant, strengthening electricity supply, diversifying the energy-mix and reducing carbon emissions, Azernews reports via the OPEC Fund.

In total, the OPEC Fund has approved more than US$600 million in new development financing at the meeting of its Governing Board on December 14 and in the final quarter of 2023.

The 18 new projects reflect the OPEC Fund’s commitment to advancing sustainable social and economic development in its partner countries. The new funds will support projects in the transportation, health, education and energy sectors, and will promote climate action and food security, and bolster international trade.

On January 9, 2020, the Ministry of Energy of the Republic of Azerbaijan and ACWA Power of the Kingdom of Saudi Arabia signed an Implementation Agreement. According to the Agreement, pilot project will be implemented for the construction of wind power plant with a capacity of 240 MW by ACWA Power. In this regard, on December 30, 2020, Investment agreement, Power Purchase agreement and Transmission Connection agreement were signed on 240 MW wind power plant between the Ministry of Energy, Azerenergy OJSC and ACWA Power of the Kingdom of Saudi Arabia. The project with a total installed capacity of 240 MW will be implemented in Sitalchay village of Khizi region and Pirakashkul village of Absheron region.

According to the preliminary estimates, the wind power station will annually generate 1 billion kWh of electricity, will give an opportunity to save 220 million cubic meters of natural gas per year, to prevent 400,000 tons of carbon dioxide emissions and to supply 300,000 homes with electricity. The total cost of the project is approximately $300 million and is expected to be fully funded by foreign investment. The plant's groundbreaking ceremony was held on January 13, 2022.