Saudi Arabia’s ACWA Power has entered into a series of agreements with a combined value of $746m. These agreements were inked during the Future Investment Initiative (FII7) held in Riyadh.

In a Heads of Terms agreement valued at $500m with EIG, an institutional investor in the global energy and infrastructure domains, ACWA Power and EIG have reached a consensus to collaborate on ventures related to power generation, water desalination, green hydrogen, and green ammonia. Their primary emphasis will be on investment opportunities in Gulf countries and Uzbekistan.

ACWA Power CEO 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.”

ACWA Power has also finalised project financing agreements totalling $246m with the European Bank for Reconstruction & Development (EBRD) and the OPEC Fund for International Development (The OPEC Fund) for the development of a 240MW wind power project in Azerbaijan. These agreements are contingent upon the fulfilment of specified conditions.

This project marks a significant milestone as the first foreign investment-based independent wind power project in the Republic of Azerbaijan. It is structured as a public-private partnership (PPP) with a total investment outlay of $347m. The project’s exclusive off-taker is the national electrical power company, Azerenerji. Once completed, it is expected to provide electricity to nearly 300,000 households, leading to savings of 220 million cubic metres of natural gas and a yearly reduction of more than 400,000 tonnes in carbon emissions.

ACWA Power has a well-established history of collaboration with EBRD and The OPEC Fund, having jointly financed numerous projects spanning across Central Asia, the Middle East, and Africa. Notably, during the 2022 edition of the Future Investment Initiative (FII), ACWA Power and EBRD inked a Memorandum of Understanding (MoU) to support the financing of sustainable infrastructure projects in Uzbekistan, Azerbaijan, and Egypt.