Baku, October 3, 2024 – The Europe Today: A major milestone has been reached in Azerbaijan’s renewable energy sector with the signing of a Joint Participation Agreement between bp, SOCAR Green (SOCAR), and the Azerbaijan Investment Company (AIC) for the construction of the 240 MW Shafaq Solar Power Plant in Jabrayil. This agreement formalizes the creation of a new joint venture, “Shafaq (Jabrayil) Solar Limited” (SJSL), which will oversee all investment activities for the project.
This move follows an earlier agreement signed by the same parties in September 2023, which initiated negotiations for the shareholders’ agreement.
The Shafaq Solar Power Plant project is set to introduce a groundbreaking commercial model known as the “Virtual Energy Transmission Mechanism.” If successful, this mechanism will facilitate the transfer of solar energy generated in Jabrayil to Azerenergy, Azerbaijan’s national electricity grid operator. In return, Azerenergy will supply an equivalent amount of electricity to the Sangachal terminal, enabling the terminal to run on renewable energy.
The shareholders’ agreement was signed by Colin Allan, bp’s Vice President for Finance for Azerbaijan, Georgia, and Turkey, on behalf of SJSL; Noelia Marivela Alvarez, bp’s Vice President for Solar Energy and Onshore Wind; Rovshan Najaf, President of SOCAR; and Ulvi Mansurov, Executive Director of AIC.
Colin Allan expressed optimism about the collaboration, stating, “We are delighted to welcome SOCAR and AIC as our partners in this significant project. This partnership will accelerate the implementation of the Shafaq initiative, and we are eager to collaborate with SOCAR and the Azerbaijani government to explore innovative ways to decarbonize the Sangachal terminal and reduce operational emissions in the Caspian region.”
SOCAR President Rovshan Najaf remarked on the historical significance of the partnership, saying, “This new venture marks a new chapter in the long-standing relationship between SOCAR and bp. Our collaboration, which started with the signing of the ‘Contract of the Century’ three decades ago, continues to flourish. I am confident that our efforts will contribute to Azerbaijan’s renewable energy goals and transform the liberated territories into a green energy zone.”
Ulvi Mansurov, Executive Director of AIC, emphasized the strategic importance of the project: “This initiative supports both Azerbaijan’s goal of increasing renewable energy to 30% by 2030 and the economic development of the Jabrayil region. We are proud to contribute to this transformative project and align with our government’s vision for green energy development.”
The shareholders’ agreement will come into effect after specific commercial and regulatory conditions are met. The agreed share distribution within SJSL is as follows: bp holds 50.01%, SOCAR 39.99%, and AIC 10%.
