SOFAZ to Acquire Minority Stake in 402 MW Solar Projects in Italy

SOFAZ's Strategic Investment in Renewable Energy

The State Oil Fund of the Republic of Azerbaijan, known as SOFAZ, has made a significant move into renewable energy by acquiring a 49% stake in a solar portfolio owned by Enfinity Global. This deal encompasses 402 megawatts (MW) of solar photovoltaic projects located in Italy, specifically in the regions of Lazio and Emilia-Romagna. Enfinity will maintain a controlling 51% interest and continue to manage the assets going forward.

Details of the Agreement

Enfinity Global, a leading player in the renewable energy sector, announced the investment on July 18, 2025, underscoring its commitment to advancing sustainable energy sources. The partnership not only expands Enfinity's investment landscape but also aligns well with SOFAZ’s strategic objectives. This investment is expected to generate stable and predictable income while contributing to the global transition toward sustainable energy—a core aim of SOFAZ as a long-term investor.

The solar portfolio includes 14 plants that are either operational or under construction, and the energy produced is secured through long-term Power Purchase Agreements (PPAs). These agreements ensure predictable energy pricing for customers, creating a dependable revenue stream for the projects involved. The portfolio is projected to produce approximately 685 gigawatt-hours (GWh) of clean electricity annually, resulting in the reduction of approximately 184,950 tons of CO₂ emissions. This reduction is comparable to the annual electricity consumption of over 250,000 households in Italy.

Strategic Impact

Carlos Domenech, the CEO of Enfinity Global, expressed enthusiasm about the new partnership, stating, "We are honored to welcome SOFAZ as a long-term partner in our first Italian solar plant portfolio. This investment represents a significant step toward sustainable energy, benefiting the countries, investors, and customers involved."

Conversely, Israfil Mammadov, CEO of SOFAZ, emphasized the strategic significance of the collaboration, stating, "Through our strategic partnership with Enfinity Global, SOFAZ is contributing to the provision of clean and competitive energy to meet Italy's growing energy demands, while simultaneously fostering local economic development and improving energy access for households."

Financial and Legal Aspects

The investment underscores a collaborative ecosystem in the renewable energy sector, with Enfinity being advised by Mediobanca for financial guidance, Legance for legal matters, and Fichtner for technical insights. On the other hand, SOFAZ has engaged JLL for M&A advisory, Dentons Europe as legal counsel, EY for financial and tax advice, and DNV for technical consulting.

This partnership is crucial as it reflects the growing trend of institutional investors entering the renewable energy space, a strategic move that aligns with global sustainability goals. As both companies move forward, the focus will be on enhancing renewable energy infrastructure in Italy and potentially throughout Europe.

Conclusion

SOFAZ's stake in Enfinity Global’s solar projects marks an important milestone in the expansion of Azerbaijan's investment strategy in sustainability. By entering the renewable energy market, SOFAZ not only diversifies its investment portfolio but plays a vital role in fostering a more sustainable energy landscape, showcasing how institutional finance can be a catalyst for change in the quest for clean energy solutions.

In light of this partnership, stakeholders are optimistic about the future trajectory of renewable energy in Italy and the impact it will have on achieving broader environmental objectives.