Timeline announced for construction of Shafag Solar Power Plant in Azerbaijan’s Jabrayil

The construction of the Shafag Solar Power Plant (SPP) in Azerbaijan's Jabrayil district is set to begin in 2025, Bakhtiyar Aslanbayli, BP's vice president for the Caspian region, said.

Speaking to reporters, Aslanbayli confirmed that physical construction of the plant would commence this year, Caliber.Az reports per local media.

The announcement follows the signing of an investment agreement in November 2024 during COP29, marking a significant milestone in the project. Aslanbayli noted that the clearing of the land for the future plant, which was previously mined, has been completed, with only the certification process remaining.

A feasibility study for the project has been finalized, and a final investment decision is expected in the coming months. Once the feasibility study is reviewed, Engineering, Procurement, and Construction (EPC) contracts will be signed, and the selection of equipment will take place. Based on these factors, a more precise timeline for the construction will be determined.

The foundation stone for the Shafag Solar Power Plant, which will have a capacity of 240 MW, was laid on November 12, 2024. During the ceremony, the Investment Agreement between the government of Azerbaijan and Shafag (Jabrayil) Solar Limited and the Land Lease Agreement between the Ministry of Energy of Azerbaijan and Shafag (Jabrayil) Solar Limited were also inked.

The Shafag Solar Power Plant is poised to be the first large-scale industrial solar project in Azerbaijan and represents the largest foreign direct investment in the country’s liberated territories. The project is being implemented under an executive agreement between bp and Azerbaijan's Ministry of Energy, signed on June 3, 2021.

Once operational, the plant is expected to generate approximately 500 million kWh of electricity annually, which will help conserve 120-150 million cubic meters of natural gas. Additionally, the plant is anticipated to reduce carbon emissions by between 260,000 and 330,000 tons each year.

bp, SOCAR, and the Azerbaijan Investment Company are key shareholders in the Shafag Solar Power Plant project, which is projected to attract an investment of around $200 million. The development of this solar power plant underscores Azerbaijan’s commitment to expanding renewable energy capacity and reducing its carbon footprint.

By Vafa Guliyeva