The Ministry of Energy of the Republic of Azerbaijan and bp have signed an Addendum to the Implementation Agreement that they had previously signed in June 2021 committing them to work together to take the next steps towards joint implementation of a 240MW solar power plant in Jabrayil.

The document signed in Shusha within the agenda of Baku Energy Week represents the next step to finalize the joint work towards realization of the solar project, named “Project Shafag”.

According to the Addendum to the Implementation Agreement, it is the parties’ plan to achieve an effective technical and commercial solution to the project implementation through piloting a commercial structure called a “Virtual Power Transfer Arrangement”. This will enable the project to produce solar power in Jabrayil and sell it in another part of the country to either public or private off-takers.

Minister of Energy Parviz Shahbazov said: "As a result of our one-year joint activity and fruitful cooperation, we have laid a foundation for the implementation of Project Shafag, which can satisfy the interests of all parties. Our agreement today provides clear directions to our future activities on many issues, including the production and transmission of electricity, and speeds up the process of starting the construction of the solar power plant. This document once again demonstrates our determination to the implementation of this project and commitment of Azerbaijan and bp to cooperation on renewable and low-carbon sources of energy. We believe that Project Shafag, the first example of a foreign partnership in the green energy zone, will give an impetus to our continued cooperation with bp on “green” energy and decarbonization.”

Gary Jones, bp’s regional president for Azerbaijan, Georgia and Türkiye, said: “The document signed today brings Project Shafag closer to the final investment decision. We are pleased to have agreed an approach that will enhance the commercial feasibility of the project making it beneficial for all stakeholders, including the potential off-takers and the Government of Azerbaijan. We are confident that this new approach will lead to decarbonization of oil and gas operations including ours. This is exactly in line with what we aim to achieve globally by working to significantly reduce our operational emissions, aiming for net zero by 2050 or sooner.”

The Implementation Agreement signed between the Ministry of Energy and bp on June 3, 2021 envisaged cooperation in the assessment and implementation of the project for the construction of a 240 MW solar power plant in Jabrayil.