BP Sells Stake in Azerbaijan Solar Project to MVM

In a strategic move to bolster its renewable energy initiatives in the Caspian region, BP has announced the sale of a 10% stake in the Shafag solar project to Hungary’s state-owned energy company, MVM Energetika Zrt. This transaction diversifies the partnership behind one of Azerbaijan’s significant green energy developments.

A New Partnership Structure Following the Azerbaijan solar project sale

The sale adjusts the ownership of the Shafag Jabrayil Solar Limited (SJSL) project. Following the deal, the shareholding is now structured as follows:
* BP: 40.01%
* SOCAR Green: 39.99%
* Azerbaijan Business Development Fund (ABDF): 10%
* MVM Energetika Zrt.: 10%

This development introduces a new international partner into the fold, leveraging a broader base of expertise and investment for the project’s success.

Project Scope and Progress

Located in the Jabrayil district of Azerbaijan, the Shafag solar facility is a cornerstone of the nation’s push towards renewable energy. The 240-megawatt project is a $200 million investment poised to make a substantial impact on the country’s energy grid.

Upon its scheduled completion in 2027, the plant is expected to generate approximately 500 gigawatt-hours of renewable energy annually. Since the final investment decision was made in June 2025, the project has advanced significantly. Major contracts have been awarded, construction is underway, and the delivery of solar panels remains on schedule.

During its peak construction phase, the project is anticipated to create up to 400 jobs, with a strong emphasis on utilizing the local workforce and resources.

Strategic Value of the Partnership in the Azerbaijan solar project sale

According to BP’s regional president for Azerbaijan, Georgia, and Turkey, the inclusion of MVM is a strategic enhancement. MVM brings extensive experience in power system operation and transmission management, building upon a previously successful collaboration between the companies on the Shah Deniz gas project.

The partnership aims to strengthen the project’s technical foundation, improving its long-term operational efficiency, resilience, and overall value. Furthermore, the Shafag solar facility is integrated with the Sangachal terminal electrification initiative through a virtual power transfer system. This innovative approach will connect the terminal to Azerbaijan’s national power grid, operated by AzerEnerji, furthering the decarbonization of existing energy infrastructure.