Shafag solar project

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 to be 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.

Since the final investment decision in 2025, the Shafag solar project has progressed significantly, with major contracts awarded, construction underway, and panel shipments continuing on schedule. The project is committed to leveraging local resources and is expected to create up to 400 jobs at the peak of construction.

Construction is due to be completed in 2027. The 240MW solar project is expected to generate ~500GWh of renewable energy annually.

The shareholding interests in SJSL are: bp 40.01%, SOCAR Green (wholly owned subsidiary of SOCAR) 39.99%, Azerbaijan Business Development Fund (ABDF) 10%, and MVM 10%.

Lightsource bp, a company fully owned by bp is the developer of the project.