Azerbaijan's Sovereign Wealth Fund Acquires Minority Stake in Italian Solar Assets

Azerbaijan's Sovereign Wealth Fund Invests in Italian Solar Energy



In a notable move in the renewable energy sector, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) has announced its acquisition of a 49% minority stake in a substantial solar portfolio comprising 402 megawatts (MW) of photovoltaic (PV) assets in Italy. This strategic investment has been made in collaboration with Enfinity Global, a key player in the renewable energy industry. Under this agreement, Enfinity will maintain a controlling 51% share and oversee the long-term management of these solar assets.

The solar portfolio, which features 14 solar power plants located in the Italian regions of Lazio and Emilia-Romagna, is backed by long-term power purchase agreements (PPAs). These contracts ensure predictable electricity sales, stabilizing cash flow for the future of the project. SOFAZ's investment aligns perfectly with its strategic goals, promising a steady income stream while contributing to global sustainability efforts—an essential mandate for the fund as a long-term investor.

Carlos Domenech, CEO of Enfinity Global, expressed enthusiasm about SOFAZ's involvement, stating that, "We are honored to welcome SOFAZ as a partner and long-term investor in our first portfolio of contracted photovoltaic projects in Italy. This investment marks a significant transition toward sustainable energy, delivering mutual benefits to investors, customers, and the countries involved.”

On the other hand, Israfil Mammadov, CEO of SOFAZ, highlighted the importance of this collaboration, noting, "With this strategic partnership with Enfinity Global, SOFAZ supports the provision of competitive and clean energy to meet Italy's growing energy demands while contributing to local economic development and household energy access. As a forward-looking institutional capital provider, we remain committed to supporting strategic investment opportunities in Italy and across Europe."

The investment will enable Enfinity to leverage financial partners to bolster its position in the Italian market, allowing for the reinvestment and acceleration of its extensive projects amounting to 2.6 GW of solar energy and 5.3 GW of energy storage systems. Enfinity’s goal is to enhance its leadership role as an independent electricity producer in Italy.

The solar facilities are either already operational or under construction, expected to generate roughly 685 gigawatt-hours (GWh) of clean electricity annually. This production level translates to a significant environmental benefit, with an estimated reduction of 184,950 tons of carbon dioxide emissions each year—equivalent to the yearly electricity consumption of over 250,000 Italian households.

The successful transactions were facilitated by a team of specialized advisors, including Mediobanca for financial advice, Legance for legal counsel, and Fichtner for technical expertise working for Enfinity. SOFAZ sought counsel from JLL for M&A advisory, Dentons Europe for legal matters, EY for financial and tax guidance, and DNV for technical consultation. As global energy needs rise, investments like these play a crucial role in transitioning towards a sustainable future while ensuring energy security and financial viability for investors.

This venture is not just a financial investment but a pivotal step towards global energy transition, showcasing how collaborative efforts between institutional investors and renewable energy corporations can lead to significant advancements in the fight against climate change. With its eyes on future opportunities, SOFAZ is enhancing its footprint in the European renewable energy market while fostering clean energy initiatives that contribute positively to the environment and local economies.

Topics Energy)

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