BAKU, Azerbaijan, December 17. bp expects the final investment decisions for Shafag solar power plant project in Azerbaijan and for the planned electrification of the bp-operated Sangachal terminal next year, bp Azerbaijan told Trend.
“The Ministry of Energy of the Republic of Azerbaijan and bp signed an Implementation Agreement on the development of the Shafag solar project in 2021. The Shafag project is expected to pilot a new commercial structure called a "Virtual Power Transfer Arrangement", which if implemented will enable the project to produce solar power and deliver it to the national power grid operator, AzerEnerji, in the Jabrayil region. AzerEnerji would then deliver an equivalent quantity of electricity to the Sangachal terminal to be used for the terminal's power supply thus reducing its operational emissions,” said the company.
bp recalled that the environmental and socio-economic impact assessment for the project was publicly discussed and approved by the government of Azerbaijan in 2024.
“In October this year, a shareholders' agreement was signed between bp, SOCAR Green and Azerbaijan Investment Company (AIC) to form a new joint venture, Shafag (Jabrayil) Solar Limited (SJSL), to own and operate the plant. In November, a ceremonial groundbreaking event for the Shafag project took place in Baku. As part of the event, an Investment Agreement and a Land Lease Agreement were signed between the Ministry of Energy of Azerbaijan and SHSL.
The new agreements marked a key step towards the final investment decisions we expect next year - both for Shafag and for the planned electrification of the bp-operated Sangachal terminal,” said the company.
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