Azerbaijan's State Fund Acquires Minority Stake in 402 MW Solar Assets in Italy

Azerbaijan's State Fund Expands Renewable Energy Footprint in Italy

In a strategic move to bolster its renewable energy investments, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) has acquired a 49% stake in a substantial 402 MW portfolio of solar power plants in Italy from Enfinity Global, a prominent player in the renewable sector. This acquisition is not only a testament to SOFAZ's commitment to sustainable energy but also aligns with its long-term investment strategy aimed at generating stable income.

Details of the Investment

The solar portfolio encompasses 14 operational and under-construction photovoltaic (PV) plants located in the Lazio and Emilia-Romagna regions. These solar facilities have long-term Power Purchase Agreements (PPAs) in place, ensuring predictable energy pricing and stable cash flows. It's estimated that this portfolio will produce approximately 685 GWh of clean energy annually, significantly contributing to the reduction of CO₂ emissions by about 184,950 tons each year. This reduction is equivalent to the annual electricity consumption of over 250,000 households in Italy, underscoring the project's positive impact on both energy sustainability and environmental preservation.

Carlos Domenech, CEO of Enfinity Global, expressed enthusiasm about the partnership, stating, "We are honored to welcome SOFAZ as a long-term partner and investor in our first classic Italian PV portfolio. This investment exemplifies the transition to sustainable energy benefiting all involved parties." This collaboration not only enhances capital inflow for Enfinity but also facilitates its reinvestment strategies, allowing for an accelerated expansion of its 2.6 GW solar and 5.3 GW energy storage pipeline.

SOFAZ’s Strategic Vision

Israfil Mammadov, CEO of SOFAZ, highlighted the importance of this strategic collaboration, stating, "Through this partnership with Enfinity Global, SOFAZ supports the provision of competitive, clean energy, contributing to Italy's growing energy needs while fostering local economic development and household access to energy." SOFAZ's approach as a forward-thinking institutional investor emphasizes its determination to seek and support strategic investment opportunities across Italy and Europe.

This transaction was supported by a comprehensive team of advisors. Enfinity was advised by Mediobanca for financial guidance, with legal support from Legance and technical assistance from Fichtner. Conversely, SOFAZ engaged JLL for merger advisory, Dentons Europe Studio Legale Tributario for legal guidance, EY for financial and tax consultancy, and DNV for technical advice.

Conclusion

The acquisition by SOFAZ marks a significant milestone not only for the Azerbaijani state fund but also for Italy's renewable energy landscape. By tapping into Italy's growing solar sector, SOFAZ is playing a crucial role in the country’s transition toward sustainable energy and is set to attract further investment in this promising industry. The partnership with Enfinity Global is expected to pave the way for additional projects that will benefit local communities and fortify Azerbaijan's commitment to renewable energy growth.