BAKU, Azerbaijan, July 24. On July 18, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) and Enfinity Global signed an agreement in Rome, in the presence of representatives from the Italian government, diplomats, and media. The event was attended by SOFAZ Executive Director Israfil Mammadov, Julio Fournier Fisas, Head of Enfinity Global’s European division, and Amedeo Teti, Director of Market Safeguards at the Ministry of Enterprises and the "Made in Italy" program.
Under the agreement, SOFAZ has acquired a 49% stake in Enfinity Global’s solar power portfolio, which has a total installed capacity of 402 MW. Enfinity Global will retain the remaining 51% and continue to manage the assets over the long term.
The investment includes 14 solar power plants - both operational and under construction - located in the Lazio and Emilia-Romagna regions. All electricity generated will be sold under long-term power purchase agreements (PPAs), providing stable pricing for consumers and predictable returns for investors.
The annual electricity generation is expected to reach approximately 685 million kWh, which will reduce CO₂ emissions by around 184,950 tons per year and provide energy to nearly 250,000 Italian households. This investment aligns with SOFAZ’s strategic goals as a long-term investor by ensuring geographic diversification in Europe, creating a stable, inflation-indexed source of income, and contributing to the global energy transition.
From hydrocarbons to electrons
For decades, Azerbaijan and Italy have built their partnership around oil and gas, pipeline infrastructure, and energy security. SOFAZ’s latest investment marks a new chapter - shifting the focus from hydrocarbons to clean energy, from molecules to electrons.
The project will help deliver affordable, renewable energy to meet Italy’s growing demand, support local economic development, and enhance energy security. It also aligns with Italy’s national decarbonization goals and the EU’s REPowerEU plan, which aims to reduce reliance on fossil fuel imports and accelerate the green transition.
Italy: a strategic market for SOFAZ
Italy is one of SOFAZ’s top investment destinations, ranking fourth in the Fund’s portfolio by volume. SOFAZ has invested over $3 billion in the country, spanning both traditional financial instruments and alternative assets, including infrastructure, real estate, and private equity.
In February 2024, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) invested 34.5 million euros in Italo - Nuovo Trasporto Viaggiatori S.p.A, Italy’s leading high-speed rail operator. The investment was made through a fund managed by Global Infrastructure Partners (GIP), a subsidiary of the U.S.-based firm BlackRock.
Founded in 2012, Italo was the first private operator of high-speed passenger rail in Italy and has since become a market leader. Its fleet includes 25 AGV 575 and 26 Italo EVO trains, capable of reaching speeds up to 360 km/h. The company operates across 54 cities, including the key Milan-Rome corridor.
In 2024, global shipping and logistics giant MSC acquired around 50% of Italo’s shares from GIP. The remaining 50% is held by GIP, co-investors, and funds under its management - including SOFAZ. Known for strong operational performance and high growth potential, Italo is well-positioned to meet rising demand for sustainable transport. For SOFAZ, the investment represents a strategic step in diversifying its portfolio through long-term infrastructure assets.
An ESG-driven approach
SOFAZ was established to transform revenues from finite natural resources into a lasting source of wealth for current and future generations in Azerbaijan. In 2024, the Fund marked its 25th anniversary and now manages over $66 billion in assets - equivalent to more than 90% of the country’s GDP. The investment portfolio delivered a return of 6% in 2024.
As a long-term institutional investor, SOFAZ follows a sustainable and flexible investment strategy, with a diversified portfolio spanning over 50 countries and covering all major asset classes. The Fund actively monitors global macroeconomic trends, including the energy transition, digitalization, and the expansion of transport and logistics infrastructure, and continues to explore opportunities for strategic direct and co-investments.
In 2024, SOFAZ moved beyond basic ESG integration and began applying ESG principles across its entire portfolio. A unified ESG due diligence framework was introduced for all new direct and real estate investments. This methodology assesses four key areas: governance, strategy, stakeholder engagement, and risk exposure - allowing the Fund to gain deep insight into ESG practices and minimize potential risks.
By the end of 2023, the carbon intensity of SOFAZ’s equity and fixed-income portfolio was below the relevant benchmark. Additionally, 61% of companies in its equity portfolio contributed to gender equality, 36% supported economic development, and 35% addressed climate action - aligned with the UN SDGs.
SOFAZ’s transparency in direct investments reached 72%, compared to a global market average of just 9%. In the real estate segment, transparency stood at 73%, far exceeding the market average of 11%—a testament to the Fund’s high standards in asset management.
The Fund also implemented proxy voting across its public equities portfolio, enabling participation in 671 votes at 86 shareholder meetings in 18 countries. These votes addressed a broad range of issues related to environmental, social, and governance (ESG) matters, reinforcing SOFAZ’s role as an active and responsible shareholder.
SOFAZ’s recent investments in Italy’s solar energy sector and high-speed rail infrastructure through Italo highlight the Fund’s ongoing transformation toward sustainable, high-performing, and diversified assets. These strategic moves not only support Europe’s energy transition and deepen Azerbaijan-Italy economic ties but also help fulfill SOFAZ’s core mission: to preserve and grow the nation’s wealth for generations to come.