Zelestra has signed a long-term tolling agreement with German energy company EnBW for 300 MW of four-hour battery energy storage capacity at its standalone battery energy storage system (BESS) project in Emilia-Romagna, northern Italy.
The agreement marks a major milestone for utility-scale battery storage in Europe and reflects the growing role of long-term contracted revenue models in supporting the development of large-scale standalone energy storage projects.
Under the agreement, Zelestra will develop and construct the battery energy storage project, while EnBW will offtake an agreed share of the project’s capacity under a long-term tolling arrangement. The agreement complements EnBW’s position in the Italian electricity market while supporting the delivery of one of Europe’s largest standalone battery storage projects.
With the execution of the agreement, Zelestra has fully secured its 2 GWh battery energy storage project, which is scheduled to begin construction in 2027 and become fully operational in 2028.
Located in Emilia-Romagna, the project is designed to address the region’s growing industrial electricity demand, rising renewable energy penetration, and increasing need for grid flexibility. Once operational, the battery storage facility is expected to facilitate renewable energy integration, enhance grid stability, and contribute to Italy’s decarbonization objectives.
Olivia Barnes, Head of Energy Transition at EnBW, said the agreement represents an important milestone for the company in Italy’s rapidly evolving renewable energy market. She noted that battery energy storage is becoming a critical component of modern power systems and highlighted the partnership’s role in delivering flexibility services that support a secure and low-carbon electricity system.
Eliano Russo, CEO of Zelestra Italy, said Italy requires large-scale flexible capacity to accommodate increasing renewable generation. He added that the long-term partnership with EnBW provides the commercial certainty needed to deliver one of Europe’s most significant battery storage projects while supporting renewable integration and energy security across the Italian power system.
Italy remains one of Zelestra’s fastest-growing markets, with the company targeting a doubling of its current 1.4 GW pipeline of solar and battery storage projects during the year. In December 2025, Zelestra secured contracts for nine projects under Italy’s FER X auctions, enabling the development of up to 168 MW of new solar capacity.
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