The deal marks a significant milestone for utility-scale battery storage in Europe and demonstrates the growing role of long-term contracted revenue structures in enabling large-scale standalone battery storage projects. It also highlights the increasing need for flexibility in the power system to highlight the grid as renewable generation continues to grow.
Under the agreement, Zelestra will build the battery storage project, and EnBW will offtake the agreed share of the project's capacity under a long-term tolling agreement. The structure complements EnBW's position in the Italian power market, while enabling delivery of one of Europe's largest battery storage projects.
“Battery storage is becoming a cornerstone of our modern, energy system” said Olivia Barnes, EnBW Head of Energy Transition. "For EnBW, the agreement is an important milestone in a strategically relevant market. Italy's rapidly growing renewables sector and evolving power market offer attractive opportunities for innovative flexibility solutions. EnBW is strengthening its position as an enabler and trusted partner for the energy transition. By combining our flexibility expertise with Zelestra's strong renewable development capabilities, we are delivering a project that will provide critical services to the Italian power system and support a secure, low-carbon future."
With the conclusion of this additional agreement, Zelestra's 2 GWh battery storage project is now fully secured. The project is expected to begin construction in 2027 and become fully operational in 2028.
Zelestra's BESS project is located in Emilia-Romagna, in northern Italy, a region with strong industrial electricity demand, increasing renewable energy penetration and a growing need for flexible capacity to support the stability and resilience of the power system. The project will help accelerate renewable integration, strengthen grid flexibility and support Italy's decarbonisation objectives.
“The Italian grid needs flexible capacity, and it needs it at scale” added Eliano Russo, CEO, Zelestra Italy. “This agreement with EnBW is exactly the kind of long-term partnership that makes large storage assets possible, and our project in Emilia Romagna will be one of Europe's most consequential projects when it comes online.”
For additional information:
