Azerbaijan breaks ground on 240 MW solar plant

The Azerbaijan Ministry of Energy has started construction work on a 240 MW solar project located in the Jabrayil region of southwestern Azerbaijan.

During the groundbreaking ceremony, agreements were signed between the Government of Azerbaijan, Shafag (Jabrayil) Solar Limited, and the Ministry of Energy, including an Investment Agreement and a Land Lease Agreement. In October 2024, BP, Socar Green, and the Azerbaijan Investment Company (AIC) formed the joint venture Shafag (Jabrayil) Solar Limited (SJSL). BP holds a 50.01% stake, Socar 39.99%, and AIC 10%.

Within the Virtual Power Transfer Arrangement (VPTA) Mechanism, electricity generated by the plant will be supplied to the existing power grid, which will provide the same amount of electricity back into the Sangachal Terminal.  As a result, renewable energy will be used to meet the terminal's energy needs and support BP's reduction in operational waste in the Caspian region. Once completed, the annual average production of Shafag SPP is estimated to be around 500 million kWh. It means that 120-150 million cubic meters of natural gas will be saved annually, and 260-330 thousand tons of CO2 emissions will be reduced.