Jabrayil: 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, bp told APA-Economics. With the first solar panel installed earlier this month, construction activities for the project continue to progress on schedule.
According to Azeri-Press News Agency, the construction of the project, which commenced following the final investment decision last year, has seen significant advancements. Essential equipment, including photovoltaic modules, piles, and structural components, have been successfully procured and delivered. Notable progress has been made in pile and tracker installation, with approximately 30% of the equipment already in place.
The project is committed to leveraging local resources and is expected to create up to 400 jobs at the peak of construction. Currently, around 350 people are employed at the site, with 123 hailing from the surrounding liberated areas. Construction is due to be completed in 2027, with the 240MW solar project anticipated to generate approximately 500GWh of renewable energy annually.
Sanctioned at a cost of $200 million in June 2025, the Shafag (Jabrayil) solar project involves the construction of a new 240MW AC solar plant in the Jabrayil district. The project is linked to the Sangachal terminal electrification (STEL) project via a new commercial structure called the ‘virtual power transfer arrangement,’ enabling the terminal to connect to the national grid operated by AzerEnerji. This includes new facilities, such as a 220/110 kV electricity substation.
Together, the Shafag and STEL projects are expected to support a reduction of operational emissions by around 50% over the future life of the Sangachal terminal. Following the electrification of the terminal, the seven gas turbines currently used for power generation will be phased out, freeing up the fuel gas for export.
The shareholding interests in the Shafag (Jabrayil) Solar Limited (SJSL) are distributed as follows: bp holds 40.01%, SOCAR Green has 39.99%, and both the Azerbaijan Business Development Fund and MVM own 10% each.