Saudi Arabia's ACWA Power unleashes $238 million for greener Azerbaijan Wind of progress

Saudi Arabia's ACWA Power has allocated approximately $238 million for the construction of the Khizi-Absheron Wind Power Plant (WPP), which will boast a capacity of 240 MW in Azerbaijan. 

ACWA Power announced the funding commitment, stating that the wind farm is slated to begin operations in the first half of 2026, Caliber.Az reports citing Gulf Business.

Upon completion, the facility will provide renewable energy to around 300,000 households and is projected to reduce carbon emissions by approximately 400,000 tons annually.

The total project cost is estimated at $286 million, with ACWA Power fully financing the initiative. This investment is anticipated to save around 220 million cubic meters of natural gas each year, highlighting its potential environmental benefits.

The groundbreaking ceremony for the Khizi-Absheron Wind Power Plant took place in January 2022, marking a significant milestone in Azerbaijan’s renewable energy journey. The project will consist of 40 wind turbines, each with a capacity of 6 MW. Of these, 17 turbines will be installed in the village of Pirekyushkul in the Absheron district, while 23 will be located in the village of Sitalchay in the Khizi district. Collectively, the wind farm is expected to generate approximately 1 billion kWh of electricity each year.

In early May 2024, Azerbaijan’s Ministry of Energy and ACWA Power signed an executive agreement to create a 200 MW energy storage battery system. This agreement also included a framework for the construction of an additional 200 MW onshore wind farm.

Currently, discussions are underway between Azerbaijan and ACWA Power regarding joint renewable energy projects, both onshore and offshore, with a total capacity of 2.5 GW.

The collaboration between the Azerbaijani government and ACWA Power began with the signing of an Implementation Agreement on January 9, 2020. This partnership was further solidified during the groundbreaking ceremony, which was attended by Azerbaijani President Ilham Aliyev and Saudi Energy Minister Prince Abdul Aziz bin Salman Al Saud on January 13, 2022.

As the Khizi-Absheron Wind Power Plant project progresses, it stands as a testament to Azerbaijan's commitment to expanding its renewable energy portfolio and enhancing energy security through sustainable development.

By Tamilla Hasanova