- bp has signed an implementation agreement with Azerbaijan’s Energy Ministry for a 240 MW solar power plant
- It is expected to be located in Zangilan/Jabrayil district as Azerbaijan looks to expand its renewable energy portfolio
- Both the partners will carry out feasibility studies to ascertain project potential on technical and commercial grounds, plant design, and finance availability
The Republic of Azerbaijan is counting on oil & gas global giant BP plc, with a growing interest in solar power through its 50% stake in Lightsource bp, to help it realize a large scale solar power plant in the country with 240 MW capacity.
Under an implementation agreement signed with the country’s Ministry of Energy, BP will cooperate to evaluate and implement the project in Zangilan/Jabrayil district, in the Karabakh region.
The duo will evaluate the feasibility of the project on technical and commercial grounds, plant design, finance availability and then take a final investment decision.
According to the Energy Ministry, the agreement serves the establishment of a green energy zone in the liberated territories as the country targets to bring down its carbon emissions by 35% by 2030.
International law firm Dentons in its February 2021 Investing in renewable energy projects in Europe Dentons’ Guide 2021 brought out with Bloomberg New Energy Finance (BNEF), estimated that the share of renewable energy in Azerbaijan’s electricity generation capacity at the end of 2020 was 17%, which it plans to grow to 22% by 2021.
According to the Denton’s guide, the Energy Ministry sees the oil and gas rich Azerbaijan’s renewable energy sources potential as 23.04 GW for solar, followed by 3 GW for wind, 380 MW for biomass and 520 MW for small hydropower. It has been evaluating 8 regions for their high solar energy potential namely, Kalbajar, Lachin, Gubadli, Zangilan, Jabrayil, Fuzuli regions, together with wind energy resources in Kelbajar and Lachin regions.
Masdar of Abu Dhabi is already on track to build a 200 MW utility scale solar project in the country after it cleared a competitive auction, which it won in January 2020 (see Masdar To Build 200 MW Solar In Azerbajian).
For BP, realization of the 240 MW solar project in Azerbaijan will contribute to its 2050 goal to become a net zero emitter. Recently the company acquired a 9 GW solar development project pipeline from 7X Energy in the US, to be built by Lightsource bp (see Lightsource BP To Develop 9 GW Solar Acquired By BP).