OPEC Fund Financed the Khizi Absheron Wind-Power Project in Azerbaijan
From：
Zhonglin International Group Date：11-02 917 Belong to：Industry Related
This week, the OPEC Fund for International Development released a $50 million loan to Saudi Arabia's ACWA Power to support the construction of the 240MW Khizi Absheron wind-power project in Azerbaijan.
This 240MW wind-power project is divided into two parts, which is respectively located at Sitalchay Village in Khizi and Pirakashkul Village in Absheron of eastern Azerbaijan. Specifically, the one in Absheron is 102 MW while the Khizi one is 138 MW. The project will be separated into two stages: the first stage will be installed 25 sets of 6.5MW wind turbines with a total capacity of 162.5 MW; the second stage will be installed 12 sets of 6.5 MW wind turbines with a total capacity of 78MW.
This is the first large-scale wind-power project built for the public good of the country and the largest of its kind in the Caucasus region. In addition, it is also the first independent wind-power project in Azerbaijan to be financed through foreign investment and constructed in the form of Public Private Partnership (PPP). The overall cost of the project is 348 million US dollars, averaging 1450 US dollars per kilowatt. The project, once completed, will not only further consolidate Azerbaijan's power construction, but also achieve energy diversification and reduce carbon emissions. To be more specific, the project is expected to account for approximately 3.7% of Azerbaijan's existing electricity installation. It can power over 30,0000 households, saving nearly 220 million cubic meters of natural gas annually.
Besides OPEC Fund, the European Bank for Reconstruction and Development (EBRD) has also provided key support for the financing of the project. Abdulhamid Alkhalifa, Director General of the OPEC Fund, stated that, The OPEC Fund is pleased to become an important partner for the Khizi Absheron wind-power project, which will mark a rapid transformation of Azerbaijan's energy landscape by promoting foreign investment and private sector financing for public-private renewable energy projects. With our support and assistance, we will promote clean energy and achieve energy diversification in Azerbaijan, and contribute to make international energy cooperations.
According to its long-term goals, Azerbaijan is committed that till 2050, 30% out of its total used energy will be renewable, which will double its current using scale and cut down carbon emission by 40%.
ACWA Power, headquartered in Saudi Arabia, is a globally-renowned developer and operator of power plants and desalination projects. The OPEC Fund and ACWA Power have long-term cooperative relationships with energy companies in countries such as Jordan (Zarga), Egypt (Kom Ombo Photovoltaics), and Uzbekistan (Sidarya, Dzhankeldy, and Bash Wind Farm).
Finally, as stated in the Climate Action Plan released in September 2022, the OPEC Fund promises to allocate 40% of its new investments for financing climate-related projects by 2030.
The Absheron and Khizi wind-power project is another renewable energy project that EBRD embarks on since its financing the very first PV power station for commercial use in Qaradağ last year. EBRD remains committed to supporting green energy conversion by providing project financing and the technical cooperation and policy dialogue involved in the business memorandum of understanding signed between EBRD and the Azerbaijani government in December 2022.
