By Rushana Aliakbarova
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The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has acquired a 49% stake in a portfolio of solar energy vegetation in Italy, marking a shift in Azerbaijan‑Italy power ties from conventional pipelines to lengthy‑time period renewable partnerships.
For many years, power cooperation between Azerbaijan and Italy was outlined by hydrocarbons and pipelines. This new deal, observers say, indicators a brand new chapter – from molecules to electrons, with Italy securing various sources of power bought beneath lengthy‑time period energy buy agreements, a mannequin that ensures secure tariffs for customers and predictable, inflation‑linked earnings streams for buyers.
The portfolio, owned and operated by Enfinity World, spans 14 photo voltaic vegetation within the Lazio and Emilia Romagna areas. As soon as absolutely operational, the websites are anticipated to generate about 685 million kilowatt hours of unpolluted electrical energy a 12 months – sufficient to fulfill the annual wants of practically 250,000 Italian households and offset round 184,950 tons of CO₂‑equal emissions.
A milestone for Azerbaijan-Italy ties
The settlement was formally marked in Rome on 18 July 2025, with Italian authorities officers, diplomats and trade leaders in attendance.
Israfil Mammadov, Govt Director of SOFAZ, mentioned the collaboration “helps the supply of aggressive clear power to fulfill Italy’s rising power wants whereas contributing to native financial growth and power entry. As a ahead‑wanting institutional capital supplier, we stay dedicated to supporting strategic funding alternatives in Italy and throughout Europe”.
Carlos Domenech, CEO of Enfinity World, referred to as it “a proud second so as to add new energies to a historic relationship constructed on gasoline and oil provide”.
A protracted‑time period international investor
Celebrating its twenty fifth anniversary final 12 months, SOFAZ manages over €66 billion in belongings, greater than 90% of Azerbaijan’s GDP, and reported a 6% funding return in 2024. Its portfolio spans greater than 50 international locations and sectors from infrastructure and actual property to non-public fairness and glued earnings, reflecting an adaptive technique formed by traits such because the power transition and digitalization.
Italy is already SOFAZ’s fourth‑largest funding vacation spot, with practically €3 billion deployed throughout conventional and various asset courses. The photo voltaic deal expands that footprint and reinforces SOFAZ’s dedication to infrastructure and lengthy‑time period actual belongings in Europe.
Powering Europe’s power transition
The funding additionally helps Italy’s nationwide decarbonization efforts and the European Union’s REPowerEU initiative, which seeks to chop reliance on imported fossil fuels and speed up the swap to renewables.
By backing a 402 MW photo voltaic portfolio in Italy, SOFAZ will not be solely diversifying its personal returns but additionally serving to Europe construct a extra resilient, low‑carbon power system.
For Azerbaijan’s sovereign wealth fund, constructed on the revenues of oil and gasoline, the message is obvious: its future, and its investments, are more and more tied to wash power.