Azerbaijan Breaks Ground on 240 MW Solar Plant

Wedoany.com Report-Nov 14, Work is underway on a 240 MW solar project in southwestern Azerbaijan following the signing of an investment agreement and land lease agreement. It is being developed under an executive agreement between the Azerbaijan Ministry of Energy and energy giant BP.

A groundbreaking ceremony has taken place for the 240 MW Shafag solar power plant in Azerbaijan.

The project, to be located in the Jabrayil region of southwestern Azerbaijan, is being developed under an executive agreement signed between the Azerbaijan Ministry of Energy and bp in June 2021.

A shareholder agreement between bp, alongside Socar Green and the Azerbaijan Investment Company (AIC) via a joint venture called Shafag (Jabrayil) Solar Limited (SJSL), was signed in October. bp holds a 50.01% stake, while Socar holds 39.99% and AIC 10%.

This week’s groundbreaking ceremony also saw an investment agreement signed between the Azerbaijan government and SJSL, as well as a land lease agreement between the Ministry of Energy and SJSL.

Once completed, the Shafag plant is projected to generate approximately 500 million kWh (500 GWh) of electricity annually.

A Virtual Power Transfer Mechanism is in place, which will see electricity generated by the plant connected to Jabrayil’s existing power grid. The grid operator will deliver an equivalent quantity of energy back to the Sangachal terminal, an industrial complex consisting of a natural gas processing plant and oil production plant.

The set up will enable renewable energy to be used to meet the terminal’s power needs and aligns with bp’s goals to lower operational emissions in the Caspian region, according to a statement from the Ministry of Energy.

Progress on the project coincides with COP29, currently taking place in Azerbaijan’s capital, Baku.

According to the International Renewable Energy Agency (IRENA), Azerbaijan had deployed 282 MW of solar by the end of 2023.

The country announced its first solar auction in April and approved the construction of two new solar plants totaling 760 MW in June.