Azerbaijan’s sovereign wealth fund is to acquire a 49% stake in a 402MW Italian solar portfolio owned by Enfinity Global.
Under the deal with the State Oil Fund of the Republic of Azerbaijan (SOFAZ), Enfinity Global will retain 51% of the portfolio and be the long-term asset manager.
The investment comprises 14 solar PV plants, both operational and under construction, located in the Lazio and Emilia-Romagna regions of Italy. The energy generated by these facilities is contracted through long-term power purchase agreements (PPAs).
The portfolio is expected to produce approximately 685GWh of clean electricity annually, which will lead to an estimated reduction of 184,950 tonnes of carbon dioxide emissions per year – equivalent to the annual electricity consumption of over 250,000 Italian households.
Enfinity Global chief executive Carlos Domenech said: “We are honoured 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.”
SOFAZ chief executive Israfil Mammadov added: “Through this strategic collaboration with Enfinity Global, SOFAZ supports the delivery of competitive, clean energy to meet Italy’s growing energy needs, 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 transaction was supported by a team of advisors to Enfinity, including Mediobanca as financial advisor, Legance as legal counsel, and Fichtner as technical advisor. SOFAZ was advised by JLL as M&A advisor, Dentons Europe Studio Legale Tributario as legal counsel, EY as financial and tax advisor, and DNV as technical advisor.