bp Sells 10% Stake In 240 MW Shafag Solar Project To MVM Energetika Zrt. (MVM)

Energy major bp has announced the sale of a 10% stake in the Shafag Solar project to Hungary’s state-owned energy company, MVM Energetika Zrt. (MVM). The move expands the existing partnership between the two companies, which are already working together on the Shah Deniz gas project. The deal strengthens the joint venture behind one of Azerbaijan’s most important renewable energy projects.

The Shafag solar power plant is being developed in the Jabrayil district of Azerbaijan. The project will have a total capacity of 240 megawatts (MW). Once operational, it is expected to generate around 500 gigawatt-hours of clean electricity each year. The electricity produced will mainly support the electrification of the Sangachal Terminal, one of the world’s largest oil and gas export terminals. By supplying renewable power to the terminal, the project aims to reduce carbon emissions and support Azerbaijan’s decarbonization goals.

After the transaction, bp remains the largest shareholder in the Shafag Jabrayil Solar Limited joint venture with a 40.01% stake. SOCAR Green holds 39.99%, while the remaining 20% is equally divided between the Azerbaijan Business Development Fund and MVM, each with 10%. The updated ownership structure reflects a mix of international and local stakeholders supporting the project.

Gary Jones, bp’s Regional President for Azerbaijan, Georgia, and Türkiye, welcomed MVM as a partner in the project. He said MVM’s experience in energy systems and transmission management will add value to the development. He also highlighted the importance of cooperation between international and local companies to ensure high standards of performance and sustainability.

The project has already moved forward since the final investment decision was taken last year. Construction activities are ongoing at the Jabrayil site, and solar panels are being delivered as per schedule. At the peak of construction, the project is expected to create around 400 jobs, providing economic benefits to the local community.

A key feature of the project is the use of a “virtual power transmission mechanism.” This system allows the electricity generated at the solar plant to be supplied to the Sangachal Terminal through Azerbaijan’s national grid, which is operated by AzerEnerji. As part of the development, new infrastructure, including a 220/110 kV substation, is being built to support power transmission.

The Shafag solar plant is scheduled to be completed in 2027. The project supports Azerbaijan’s broader strategy to diversify its energy mix and increase the share of renewables. By linking solar power with its traditional oil and gas operations, the country aims to strengthen its transition toward a lower-carbon future.