Saudi ACWA Power allocates about $240M for wind farm construction in Azerbaijan

Saudi ACWA Power has announced $238 million in financing for the Absheron-Khizi Wind Farm, a 240MW project in Azerbaijan, Report informs referring to the Gulf Business.

This project represents the first foreign investment-based independent wind power initiative in the country, structured as a public-private partnership.

Expected to begin operations in the first half of 2026, the Absheron-Khizi plant will provide renewable energy to nearly 300,000 households while reducing carbon emissions by approximately 400,000 tons annually.

According to information posted on ACWA Power's official website, the project cost, which will be fully financed by the Saudi company, is stated at $286 million.

The commissioning of this plant will also save about 220 million cubic meters of natural gas annually.

The groundbreaking ceremony for the 240 MW Khizi-Absheron wind farm took place in January 2022. The project will install 40 turbines with 6 MW capacity each, including 17 in Pirekushkul village of Absheron district and 23 in Sitalchay village of Khizi district. The wind farm will be able to generate about 1 billion kWh of electricity annually.

Additionally, in early May 2024, Azerbaijan's Ministry of Energy and ACWA Power signed an executive agreement for a 200 MW battery energy storage system project and a framework agreement for the construction of a 200 MW onshore wind power plant.

Overall, Azerbaijan and ACWA Power are currently discussing joint renewable energy projects both onshore and offshore with a total capacity of 2.5 GW.