Construction activities for Shafag solar project in Azerbaijan progressing on schedule

The investors behind the Shafag (Jabrayil) solar project—bp, SOCAR Green, and the Azerbaijan Business Development Fund—are thrilled to report that construction is on track in the Jabrayil district of Azerbaijan, according to Trend via bp.

Source: Trend

Following the final investment decision made in June 2025, two significant contracts have been awarded:

Engineering, Procurement and Construction (EPC) Contract

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

Module Supply Contract

• Valued at over $29 million, this contract has been awarded to Trina Solar (Schweiz) AG for the provision of solar panels. Work has commenced under this agreement, with the first shipment of panels successfully delivered to the site in August 2025.

Construction activities for the project are anticipated to continue until mid-2027, with a strong emphasis on utilizing local resources. At its peak, the project is expected to generate up to 400 jobs.

Project Overview

The $200 million Shafag (Jabrayil) solar project, approved in June 2025, involves the construction of a new 240 MW AC solar plant in the Jabrayil district of Azerbaijan.

This project is connected to the Sangachal terminal electrification (STEL) project through a new commercial structure known as a ‘virtual power transfer arrangement.’ This arrangement will facilitate the terminal’s connection to the national grid, operated by AzerEnerji, via new facilities to be established both inside and outside the terminal, including a new 220/110 kV electricity substation.

Together, the Shafag and STEL projects are projected to reduce operational emissions by approximately 50% over the expected lifespan of the Sangachal terminal, based on current forecasts and plans.

Following the electrification of the terminal, the seven gas turbines currently in use for power generation will be systematically removed, allowing the fuel gas to be redirected for export.

Shareholding Interests

The shareholding composition in SJSL is as follows:

• bp: 50.01%
• SOCAR Green (a wholly owned subsidiary of SOCAR): 39.99%
• ABDF: 10%

Lightsource bp, a wholly owned subsidiary of bp, is the project developer.