Azerbaijan Launches Groundbreaking Ceremony for 240 MW Shafag Solar Power Plant in Jabrayil

In a landmark move towards renewable energy, Azerbaijan has officially commenced construction of the 240 MW Shafag Solar Power Plant (SPP) in the liberated Jabrayil district. The project, launched during COP29 events, represents the country’s largest industrial-scale solar initiative and a significant milestone in its clean energy transition.

Historic Investment in Jabrayil District

This ambitious project, valued at approximately $200 million, is the largest foreign direct investment in the region's liberated territories. It is being executed under an Implementation Agreement signed between Azerbaijan’s Ministry of Energy and BP in 2021. During the groundbreaking ceremony, key agreements, including an Investment Agreement and a Land Lease Agreement, were formalized to propel the project forward.

Key Benefits of the Shafag Solar Power Plant

The Shafag SPP is set to deliver significant environmental and economic benefits:

• Annual Energy Output: Approximately 500 million kilowatt-hours, enough to power thousands of homes.

• Natural Gas Savings: Expected to save 120-150 million cubic meters of natural gas annually.

• Carbon Emissions Reduction: A forecasted decrease of 260,000-330,000 tons of CO₂ emissions per year.

Integration Through Virtual Power Transfer

Under the innovative Virtual Power Transfer Mechanism (VPTA), energy generated at the Shafag SPP will flow into the Jabrayil power grid. An equivalent energy supply will meet the needs of the Sangachal terminal, aiding BP's efforts to lower operational emissions across the Caspian region.

Collaborative Decarbonization Efforts

This project marks a key collaboration between BP, the State Oil Company of Azerbaijan (SOCAR), and the Azerbaijan Investment Company. It aligns with Azerbaijan’s broader goals of reducing carbon emissions while strengthening its national economy and transitioning towards sustainable energy.

Shafag Solar: Paving the Way for Green Energy

The Shafag Solar Power Plant is more than a renewable energy project—it symbolizes Azerbaijan's commitment to innovation, sustainability, and international collaboration in achieving its clean energy ambitions.