BAKU, Azerbaijan, January 26. Physical work on the construction of a 240 MW "Shafag" (Sunrise) solar power plant in Jabrayil / Zangilan zone with bp may begin this year, bp Vice President for the Caspian region Bakhtiyar Aslanbayli in an interview with local media, Trend reports.
"According to bp's new strategy, increasing investments in renewable energy is a priority. Azerbaijan's plans to switch to renewable energy are also very ambitious. Based on the existing trusting relations with Azerbaijan, we are very pleased to consider expanding cooperation not only in the oil and gas sector, but also in the green energy sector," he said.
According to him, in this regard, an agreement was signed with the Ministry of Energy of Azerbaijan, within the framework of which a working group was established.
"The main commercial issues on this project have already been resolved. Currently, work is underway to clear the territories by the Azerbaijani National Agency for Mine Action (ANAMA). We hope that additional steps will be taken this year to start the implementation of this project," Aslanbayli stressed.
The vice president added that the signing of the final financial agreement is expected in 2023, after which it will be possible to proceed directly to the construction of the power plant.
"We have broad plans for the implementation of renewable energy projects in Azerbaijan. While continuing to work on current oil and gas projects, we will simultaneously increase investments in the renewable energy sector. We have provided the Ministry of Energy with our plan for decarbonization in the country and we will always be happy to continue this discussion. We hope that this will not be our last project, and we will continue to expand our presence in this sector," he said.
Meanwhile, in June 2022, Azerbaijan’s Ministry of Energy and bp 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. In September, it was announced that commercial evaluation for the projects is underway.
As part of this project, it is planned to introduce a business model involving virtual transmission of electricity. This model is a mechanism for the production and consumption of electricity, which will be beneficial to all parties, and at the same time will contribute to decarbonization. In other words, the green energy produced in Karabakh will be transported to Absheron, which will save natural gas used to generate electricity in Sangachal terminal.