BP has announced the sale of a 10% participating interest in “Shafag Jabrayil Solar Limited” (SJSL) to Hungary’s “MVM Energetika Zrt.” (MVM), BP told APA-Economics.
This move further strengthens the partnership in the joint venture financing the major solar energy project implemented by BP in the Jabrayil district.
Following the transaction, the shares in the Shafag solar energy project are distributed as follows: bp — 40.01%, SOCAR Green — 39.99%, Azerbaijan Business Development Fund (ABDF) — 10%, and MVM — 10%.
The Shafag solar project has made significant progress since the final investment decision was taken last year. Key project agreements have been signed, construction has already started, and the delivery of panels to the country is continuing according to schedule.
Maximizing the use of local resources is one of the main commitments of the construction phase. Nearly 400 jobs are expected to be created during the peak period of the project.
Construction is scheduled for completion in 2027. The 240 MW power plant being built in Jabrayil is expected to generate approximately 500 GWh of renewable electricity annually.
The Shafag solar project is closely linked to the Sangachal Terminal Electrification (STEL) project through a new commercial model called the “virtual energy transmission mechanism.” Under this mechanism, the Sangachal terminal will be connected to the state electricity grid managed by AzerEnerji OJSC. New facilities will be constructed both inside and outside the terminal area, including a new 220/110 kV electrical substation.
BP’s strategy is to increase upstream activities, focus its downstream business on selected areas, and create long-term value for shareholders through disciplined investment in the energy transition.
The final investment decision for the Shafag solar project was announced last year, marking one of the key renewable energy initiatives in Azerbaijan.
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