Azerbaijan's SOFAZ to Invest in Italian Solar Assets for Sustainable Energy Transition

Azerbaijan's SOFAZ to Acquire Minority Stake in Italian Solar Assets

In a strategic move towards promoting sustainable energy, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) is set to acquire a 49% stake in a portfolio of solar energy assets located in Italy. This portfolio, developed by Enfinity Global—a leader in the renewable energy sector—boasts a total capacity of 402 megawatts (MW) and includes 14 solar power plants spread across the Lazio and Emilia-Romagna regions. The partnership aims to leverage renewable energy, contributing to Italy's energy needs while supporting local economic growth.

The deal marks a significant expansion for SOFAZ into the realm of renewable energy investments. It aligns with their strategy to seek stable and predictable returns while participating in global efforts to transition from fossil fuels to clean energy sources. Following the completion of this transaction, Enfinity will retain a majority interest and will manage the assets long-term, capitalizing on their established expertise in the Italian market.

The portfolio in question encompasses both operational solar plants and those still under construction. Enfinity's commitment through long-term Power Purchase Agreements (PPAs) ensures reliable energy pricing for clients and predictable cash flows. With an estimated yearly output of approximately 685 gigawatt-hours (GWh) of clean energy, this investment is projected to avert about 184,950 tons of CO₂ emissions each year. This reduction is significant, as it equates to the annual energy needs of over 250,000 households in Italy.

Carlos Domenech, the CEO of Enfinity Global, expressed his enthusiasm about SOFAZ's involvement, remarking, "We are honored and welcome SOFAZ as a long-term partner and investor to our first vintage Italian contracted PV portfolio. This investment is a meaningful example of transitioning to sustainable energy with a win-win outcome for all countries, investors, and customers involved."

From SOFAZ's perspective, CEO Israfil Mammadov highlighted the agreement's potential to deliver competitive, clean energy while fostering local economic development and improving energy accessibility for households. Mammadov noted the fund's commitment to pursuing strategic investment opportunities, enhancing their portfolio in Italy and across other European markets.

The transaction involved multiple advisory firms to facilitate the agreement. Enfinity was supported by financial advisor Mediobanca, legal counsel from Legance, and technical consultancy from Fichtner, while SOFAZ engaged JLL as an M&A advisor and Dentons Europe for legal counsel, alongside EY for financial and tax advice and DNV for technical support.

As the world moves toward more environmentally sustainable practices, investments like this reflect a broader trend among sovereign wealth funds aiming to diversify their portfolios and embrace green technologies. SOFAZ's entry into Italy's solar energy market could serve as a catalyst for more global investments in renewable sources.

In conclusion, this partnership illustrates the joint commitment of Azerbaijan and Italy towards a greener future, underscoring the vital role that international collaborations can play in the global transition to sustainable energy solutions and economic growth.