Riyadh – Mubasher: ACWA Power Company has concluded agreements with international entities at a combined value of $746 million during the seventh Future Investment Initiative (FII7) conference which was held in the capital of Saudi Arabia on 24-26 October 2023, according to a press release.

The Saudi company signed Heads of Terms agreement amounting to $500 million with the US-headquartered EIG. Under the deal, ACWA Power will team up with the energy and infrastructure institutional investor to focus mainly on directing investments into power generation, water desalination, green hydrogen, and green ammonia projects in the Gulf countries and Uzbekistan.

CEO of ACWA Power, Marco Arcelli, said: “This is a landmark agreement with EIG, one of the world’s largest infrastructure investment firms. Their commitment to working with ACWA Power is a sign of confidence in the company’s strong position in power, water, and green hydrogen, and we look forward to collaborating in these areas.”

In addition, ACWA Power signed funding agreements at a total value of $246 million with both the European Bank for Reconstruction and Development (EBRD) as well as the OPEC Fund for International Development to execute a 240-megawatt (MW) wind power project in Azerbaijan. The agreements are subject to the completion of the conditions precedent.

Arcelli noted: “ACWA Power is enthusiastic about playing a pivotal role in helping Azerbaijan achieve its goal of meeting 30% of its energy needs through renewable sources by 2030.”

It is worth noting that the wind power development is the first foreign investment-based independent project of its kind in Azerbaijan. It is set as a public-private partnership (PPP) at a total investment cost of $347 million.

OPEC Fund Director-General, Abdulhamid Alkhalifa, said: “The OPEC Fund is proud to be a key partner in the Khizi-Absheron Wind Power Project, which will mark a shift in Azerbaijan’s energy landscape by promoting foreign investment and private sector financing for a public-private partnership renewable project.”

Alkhalifa added: “Through our support we aim to catalyse clean energy generation and a diversified energy future for Azerbaijan. The agreement is also testament to what international development cooperation can achieve.”

EBRD’s Managing Director, Sustainable Infrastructure Group, Nandita Parshad, said: “I am so pleased that with this signing we have achieved already nearly 1.5 gigawatt (GW) of that promise to scale up renewable energy in the EBRD region from megawatts to gigawatts.” 

It is worth noting that in the 2022 edition of FII event, ACWA Power and EBRD signed MoU to finance sustainable infrastructure projects in Uzbekistan, Azerbaijan, and Egypt. Meanwhile, the Saudi listed firm announced the financial close for its project in Egypt in August 2023.

ACWA Power is also working with the State Oil Company of Azerbaijan Republic (SOCAR) to endorse its collaboration in the renewable energy and green hydrogen sectors.

During the FII7 conference, Arcelli said: “Solar and wind energy are already secured and reliable, and they’ve reached a point where they don’t need incentives to thrive.”

Regarding its financial position in the first half (H1) of 2023, ACWA Power witnessed a 26.29% increase in net profit after Zakat and tax to SAR 684.13 million from SAR 541.72 million in H1-22.