storage

Italy

Zelestra and BKW sign long-term tolling agreement enabling the delivery of a major 2 GWh battery storage project in Italy

Zelestra has signed a long-term tolling agreement with BKW to deliver a large-scale battery energy storage system (BESS) – of up to 2 GWh - in the north of Italy, a first of its kind long-term financial tolling construct for battery storage in the country.
Zelestra and BKW sign long-term tolling agreement enabling the delivery of a major 2 GWh battery storage project in Italy
Courtesy of Zelestra.

Zelestra will make part of the plant’s generation capacity available to BKW to manage and optimise the flexibility in the market. The cooperation between the two partners enables the construction of one of Europe’s largest battery storage projects and reinforces Zelestra’s strategy to co-build innovative solutions with its partners to help decarbonise their operations.

With the commercialisation of the battery project, BKW expands its footprint in Italian renewables and innovative BESS structures.

Construction is expected to begin in 2027, with the project set to become fully operational in 2028. The north of Italy has high demand for electricity from industrial customers, with increasing renewables capacity coming on to the grid, and an expected phase out of thermal plants. Zelestra and BKW’s major BESS project introduces an innovative approach that enhances grid flexibility, accelerates renewable integration, and supports the decarbonisation of the Italian power generation fleet and at the same time enhancing security of supplies.

The latest agreement expands and deepens the clean energy partnership between Zelestra and BKW. In December 2024 the partners closed a ten-year PPA which enabled the construction of two solar projects, Ginosa (Puglia) and Bellomo (Sicily), totalling 16 MWdc.

“Italy is one of the most attractive BESS markets in Europe” said Martina Nicodemo, Commercial Lead Renewables & BESS Origination Italy at BKW. “Through this partnership with Zelestra, we demonstrate that BKW’s product structuring expertise is at the forefront of the industry. Together, we are committed to supporting Italy’s energy transition and driving our joint ambition for a more flexible and sustainable energy system.”

Zelestra has a mature project portfolio of around 1400 MW of solar and BESS projects in Italy. The company intends to participate in both the Macse and Capacity Market auctions for BESS projects and the FER X auction for solar projects this year.

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Zelestra

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