The investors of the Shafag (Jabrayil) solar project – BP, SOCAR Green, the Azerbaijan Business Development Fund and MVM – are pleased to advise that the project has reached a key milestone by commencing panel installation activities at the site in the Jabrayil district of Azerbaijan.
With the first solar panel installed earlier this month, construction activities for the project continue to progress on schedule.
Nadir Imanov, BP's vice president, finance, for the Azerbaijan, Georgia and Türkiye region, said: "We are pleased to reach this important construction milestone. Together with our coventurers, we are making steady progress in Jabrayil and remain focused on delivering the project safely and efficiently. This landmark solar development is uniquely positioned to create value through renewable electricity generation, as well as support the decarbonization of our operations in the region, contributing to Azerbaijan's energy transition efforts."
Since the final investment decision last year, the construction of the project has made significant progress. Procurement and delivery of key equipment, including photovoltaic modules, piles and structural components, have been successfully completed, and substantial progress has been achieved on pile and tracker installation, with around 30% of the equipment already installed.
The project is committed to leveraging local resources and is expected to create up to 400 jobs at the peak of construction. Around 350 people are currently employed at the project, of whom 123 are from the surrounding liberated areas.
Construction is due to be completed in 2027. The 240MW solar project is expected to generate ~500GWh of renewable energy annually.
The $200 million Shafag (Jabrayil) solar project, sanctioned in June 2025, consists of construction of a new 240MW AC solar plant in the Jabrayil district of Azerbaijan.
The project is linked to the Sangachal terminal electrification (STEL) project via a new commercial structure called 'virtual power transfer arrangement', which will enable the terminal to connect to the national grid, operated by AzerEnerji, via new facilities being built both within and outside the terminal, including a new 220/110 kV electricity substation.
Together, the Shafag and STEL projects are expected to support the reduction of operational emissions by around 50% over the future life of the Sangachal terminal, based on the current outlook and plans.
Following the electrification of the terminal, the seven gas turbines currently used at the terminal to generate power, will be removed in phases, freeing up the fuel gas for export.
The shareholding interests in Shafag (Jabrayil) Solar Limited (SJSL) are: bp 40.01%, SOCAR Green 39.99%, Azerbaijan Business Development Fund 10%, and MVM 10%.
