BP invest in Azerbaijan solar energy

Azerbaijan’s SOCAR, BP and the Azerbaijan Business Development Fund (ABDF) have made a final investment decision to build the 240-megawatt Shafag solar power plant in the Jabrayil district, the companies said on Monday.

At the same time, shareholders of the Sangachal Terminal consortium, including BP, SOCAR and other international firms, approved an electrification project to connect the terminal to the national power grid via new infrastructure.

Both projects will use a "virtual power purchase agreement," under which electricity generated in Jabrayil will be fed into the national grid, with an equivalent amount supplied to the terminal near Baku. BP says the approach will cut the terminal’s carbon emissions by 50%.

The terminal currently relies on seven gas turbines, which will be phased out, freeing up natural gas for export.

Construction of the Shafag plant is estimated at $200 million and is expected to be completed by mid-2027. BP’s subsidiary Lightsource BP will implement the project. Ownership stakes in Shafag are split: BP 50.01%, SOCAR Green 39.99%, and ABDF 10%.

The $230 million terminal electrification project (STEL) will be completed in two stages, in 2027 and 2028.

N.Təbrizli