As part of the COP29 events, the groundbreaking ceremony for the 240 MW Shafag Solar Power Plant (SPP) in Azerbaijan’s Jabrayil district, was held.
According to Report, this plant is the first industrial-scale solar energy project and the largest direct foreign investment in the liberated territories of Azerbaijan.
The project is being realized under the Implementation Agreement signed between the Azerbaijani Energy Ministry and BP on June 3, 2021.
During the groundbreaking ceremony, the Investment Agreement between the Government of Azerbaijan and Shafag (Jabrayil) Solar Limited Company and the Land Lease Agreement between the Ministry of Energy and Shafag (Jabrayil) Solar Limited Company were signed.
The Shafag SPP is expected to generate approximately 500 million kilowatt-hours of electricity annually, which translates to savings of 120-150 million cubic meters of natural gas and a reduction of 260,000-330,000 tons of carbon emissions per year.
Under the Virtual Power Transfer Mechanism (VPTA), the energy produced at the plant will be transmitted to the existing power grid in Jabrayil, and an equivalent amount of energy will be supplied to the Sangachal terminal. This will allow the use of renewable energy to meet the terminal's energy needs and support BP's efforts to reduce operational emissions in the Caspian region.
The implementation of this project will make a significant contribution to both the national economy and the decarbonization efforts of the consortium members, including the State Oil Company of Azerbaijan (SOCAR).
The shareholders of the Shafag Solar Power Plant are BP, SOCAR, and the Azerbaijan Investment Company, with an estimated investment of approximately $200 million in the project.