BP, SOCAR, Azerbaijan Investment Co hold groundbreaking ceremony for 240 MW Shafag solar power plant costing $200 mln

BAKU. Nov 12 (Interfax) - The groundbreaking ceremony for the 240 MW Shafag solar power plant took place as part of the COP29 climate conference in Azerbaijan's Jebrayil district on Tuesday, an Interfax correspondent reported from the ceremony.

Two documents were signed: an investment agreement between the government of Azerbaijan and Shafag (Jebrayil) Solar Limited (SJSL) and a land lease agreement between the Azerbaijani Energy Ministry and SJSL.

It is expected that the solar power plant will generate 500 kWh of electricity per year, saving 120 million-150 million cubic meters of gas and cutting carbon emissions by 260,000-330,000 tonnes per year.

Project costs are around $200 million.

BP plc , SOCAR Green and Azerbaijan Investment Company (AIC), forming the new Shafag (Jabrayil) Solar Limited (SJSL) joint investment vehicle for the Shafag solar power plant at the beginning of October. BP will own 50.01%, SOCAR - 39.99% and AIC - 10%.

Azerbaijani President Ilham Aliyev has said the Shafag SPP would provide electricity to the Sangachal oil and gas terminal and export the gas made available to Europe. This gas is currently used to generate electricity at the terminal itself for internal needs.

The Azerbaijani Energy Ministry and BP signed an executive cooperation agreement on June 3, 2021 on the assessment and implementation of a project for the construction of a 240 MW capacity solar power plant in the Jabrayil region. The State Oil Company of the Azerbaijani Republic (SOCAR) and the Azerbaijan Investment Company signed an agreement with BP to join the Shafag SPP construction project on September 21, 2023.

The COP29 conference got underway in Baku on November 11 and will end on November 22.