BP Pushes Ahead With 240-MW Azerbaijan Solar To Decarbonize Operations

• BP advances a 240-MW solar project in Azerbaijan to offset power at the Sangachal terminal, signaling how oil regions are integrating large-scale renewables.

BP is pushing forward with a 240-megawatt (MW) solar plant in Azerbaijan, a project designed to feed clean electricity into one of the company’s most important oil and gas hubs. The development, commonly referred to as the Shafag project, sits within the country’s “Green Energy Zone” and is expected to supply power that offsets demand at the Sangachal terminal—among the largest hydrocarbon processing facilities worldwide.

Rather than replacing upstream operations, the project aims to reduce the emissions intensity of existing assets. BP plans to route output via a virtual transfer arrangement so that each megawatt-hour generated by the solar farm is matched against the terminal’s consumption. It’s a pragmatic model that could be replicated across other hydrocarbon centers looking to shrink Scope 2 emissions without disrupting energy exports.

Azerbaijan has been courting international investors to accelerate renewables deployment and diversify its generation mix. Authorities have set medium-term targets that elevate the role of wind and solar, encouraged by improved land availability and transmission planning in the Garadagh district. For BP, the venture aligns with its portfolio strategy: use existing infrastructure, secure predictable offtake, and demonstrate measurable decarbonization.

Developers close to the project say phasing will help manage grid integration and equipment logistics, with early works laying foundations for the full 240 MW. EPC contracting and module procurement will be watched closely given global price swings and shifting supply chains.

The bigger story, however, is the template. Energy majors in resource-rich regions face growing pressure to show credible transition pathways. By combining a cornerstone oil terminal with dedicated utility-scale solar, BP can point to tangible emissions cuts while preserving operational reliability. If the approach holds up commercially—stable output, limited curtailment, clear accounting—it could inform how other producers blend renewables into brownfield assets.

For Azerbaijan, the project offers momentum: new clean capacity, a flagship international partner, and a signal that the Caspian’s future isn’t only about hydrocarbons, but about the systems that make them cleaner.