Joint Participation Agreement Signed For 240 MW Shafaq Solar Power Plant In Jabrayil

(MENAFN- AzerNews) Nazrin Abdul Read more

A Joint Participation Agreement has been signed between bp, SOCAR Green (SOCAR), and the Azerbaijan investment Company (AIC) for the construction of the 240 MW Shafaq Solar Power plant in Jabrayil, Azernews reports.

This agreement marks the establishment of a new joint venture, "Shafaq (Jabrayil) Solar Limited" (SJSL), which will oversee all investment activities related to the project.

Prior to this, an accession agreement was signed by the same parties in September of last year to initiate negotiations for the shareholders' agreement.

The Shafaq project is expected to pioneer a new commercial model called the "Virtual Energy Transmission Mechanism." If successfully implemented, this mechanism will allow solar energy generated in Jabrayil to be transferred to Azerenergy, the operator of Azerbaijan's electricity grid. Azerenergy will then deliver an equivalent amount of electricity to the Sangachal terminal, enabling the terminal to utilize renewable energy for its operational needs.

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.

At the signing event, Colin Allan expressed enthusiasm about the collaboration:“We are delighted to welcome SOCAR and AİŞ as our new partners in this significant project. Our joint efforts will expedite the implementation of the Shafaq initiative and pave the way for a new era of cooperation with SOCAR and the government of Azerbaijan. By combining our deep expertise, we can support a truly innovative approach to decarbonizing the Sangachal terminal and reducing operational emissions in the Caspian region.”

SOCAR President Rovshan Najaf remarked,“A new chapter is opening in the long-standing, mutually beneficial relationship between SOCAR and bp. I am pleased to see our collaboration, which began with the signing of the 'Contract of the Century' thirty years ago, continue to thrive and expand. I am confident that our joint efforts will not only enhance Azerbaijan's renewable energy potential but also contribute significantly to transforming the liberated territories into a 'green energy' zone.”

Ulvi Mansurov, Executive Director of AIC, added,“This project is of great strategic importance to us, representing a key investment in the liberated territories of Azerbaijan. In addition to supporting the nation's goal of increasing the share of renewable energy sources to 30% by 2030, we aim to foster economic development in the Jabrayil region. We are proud to be part of this transformative initiative and look forward to its successful implementation, aligning with our government's vision for green energy development.”

The shareholders' agreement will take effect upon the fulfillment of specific commercial and regulatory conditions. Once effective, the share distribution within SJSL will be as follows: bp - 50.01%, SOCAR - 39.99%, and AIC - 10%.

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