ACWA Power, EBRD sign pact for Renewable Energy Infra Projects

Key Saudi Arabian power generator and RE player ACWA Power Company has announced that it has signed a Memorandum of Understanding to finance sustainable infrastructure projects with the European Bank for Reconstruction and Development (EBRD). The pact was announced on the side lines of the Future Investment Initiative Forum, which took place in Riyadh.

The official statement of ACWA held that the MOU was signed by Paddy Padmanathan, Vice Chairman and Chief Executive Officer, ACWA Power and Nandita Parshad, Managing Director- Sustainable Infrastructure Group, EBRD. The agreement says that both organisations will cooperate over the next five years and will focus on project development in renewable energy, green hydrogen, and green desalination across countries. Green desalination refers to converting sea water to potable water using green energy, in an  otherwise very energy intensive process.

ACWA said that the countries of focus include Uzbekistan, Azerbaijan and Egypt, with the objective of jointly supporting sustainable energy transition and enabling power and water access in line with local and global environmental objectives.

ACWA Power has worked with London headquartered EBRD since 2011. The financial institution has financed many projects of ACWA Power in the Central Asian, Middle Eastern and North African markets.

Paddy Padmanathan, Chief Executive Officer, ACWA Power, said, “With COP27 around the corner in Egypt, the world’s attention will be on constructive implementation plans that have a tangible impact in mitigating climate change. This MOU with the EBRD is an important signal from financial institutions in finding lasting solutions in the face of global warming, cements a long-standing business relationship and is a vote of confidence in ACWA Power’s abilities in being part of the journey towards a sustainable future.”

Nandita Parshad, Managing Director, Sustainable Infrastructure Group, EBRD, “This partnership is important for mobilising private capital and know how to accelerate the energy transition and create economic opportunities to change lives in the countries where the EBRD invests.”

To date, ACWA Power has nine projects under operation or advanced development in Azerbaijan, Uzbekistan and Egypt. Of these, eight facilities are in the renewable energy space.

The company CEO held recently that ACWA looks to invest $10 billion in renewable energy including green hydrogen in Saudi Arabia in the coming five years which could be raised to even $25 billion if the government facilitates. Its also developing $7 billion green hydrogen facility in Oman’s Dhofar region which will be commissioned before 2029.

Large energy infrastructure  firms in the region, especially from the UAE and Saudi Arabia have focused on the Central Asian and MENA region for projects, as firms from other markets have sometimes avoided these regions due to lack of local presence or expertise.