Landmark deal agreed for $350m Azeri wind farm PPP

An agreement has been signed for the first foreign investment-based independent wind power project in the Republic of Azerbaijan.

ACWA Power - Azerbaijan wind farm

The deal is between private partners ACWA Power and the OPEC Fund for International Development, plus the European Bank for Reconstruction and Development and the national electrical power company Azerenerji.

Under the deal, Azerenerji will be the sole offtaker of 240MW of wind power generated by the new wind farm, which is expected to power nearly 300,000 households.

The EBRD is providing $246m of debt finance to ACWA and the OPEC Fund, with the total investment cost of the project set at $347m.

Abdulhamid Alkhalifa, OPEC Fund director-general, said the agreement “will mark a shift in Azerbaijan’s energy landscape by promoting foreign investment and private sector financing for a public-private partnership renewable project”.