ECONOMY

Shafag solar project progressing on schedule

13.10.2025 [13:57]
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Baku, October 13, AZERTAC

The investors of the Shafag (Jabrayil) solar project – bp, SOCAR Green, and the Azerbaijan Business Development Fund – have announced that construction activities for the project are progressing on schedule in the Jabrayil district of Azerbaijan, bp told AZERTAC.

Following the final investment decision in June 2025, the project has awarded two major contracts:

∙ Engineering, Procurement and Construction (EPC) contract.

Valued at around $117 million, this contract has been awarded to Intec and Complant. It covers the full scope of engineering, procurement, and construction services, as well as operation and maintenance for the first two years of plant’s operations. Construction activities are already underway, with site mobilization completed and earthworks and internal road construction currently in progress.

∙ Module supply contract.

Valued at more than $29 million, this contract has been awarded to Trina Solar (Schweiz) AG for the supply of solar panels. Under this agreement, work has also commenced and the first shipment of panels was successfully delivered to the site in August 2025.

Colin Allan, director of Shafag (Jabrayil) Solar Limited (SJSL), commented: “We are pleased to see strong progress on the Shafag solar project, which we are delivering together with SOCAR Green and the Azerbaijan Business Development Fund, the co-venturers in the project, and in collaboration with many other stakeholders.

“We are also excited to share that during earthworks, a historic archaeological site was discovered in the northern part of the project area. This open settlement, potentially dating back to the Bronze to Early Iron Ages, includes surface materials such as grinding stone fragments, clay pottery shards (jars, bowls, cooking pots), and structural patterns of arranged river stones. We are working closely with experts from Azerbaijan’s Institute of Archaeology and Anthropology to assess the historical value and significance of these findings.”

Construction activities for the project are expected to continue through mid-2027, with a strong focus on utilizing local resources. At peak, the project is expected to create up to 400 jobs.

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.

The shareholding interests in SJSL are: bp 50.01%, SOCAR Green (wholly owned subsidiary of SOCAR) 39.99%, and ABDF 10%. Lightsource bp, a company fully owned by bp is the developer of the project.