Italian energy storage vehicle price trend

Could Italy's grid-scale battery storage market see a massive expansion?

Grid-scale battery storage | Cameron Murray writes about the nascent market for large-scale battery storage in Italy, which could see a massive expansion in the short term. Italy’s grid-scale energy storage market: a sleeping dragon Render of a co-located battery storage project in Italy from Innovo Group. Credit: Innovo Storage smart power

Does Italy have a battery storage market?

This report is part of a series that analyses the battery storage market in select European countries. Italy has both a rapidly growing utility-scale market as well as a flourishing customer-sited battery storage market. Customer-sited storage adoption has been mainly driven by a combination of high electricity prices and generous tax incentives.

Will Italian capacity market auctions hold positive news?

The first two Italian Capacity Market auctions (with delivery in 2022 and 2023) have not met their targets. As a result, auctions cleared at maximum premiums. The third auction, which will take place next week, might hold positive news, as some improvements in the process emerged.

Which Bess companies are coming to Italy?

Girolami also highlights the China-based BESS providers Sungrow, Huawei and CATL. Last year, competitor Nidec ASI announced orders from Italy of 1.35GW/5.4GWh by an unnamed company. Interestingly, the details and timeline closely match up with the projects being deployed by Enel.

Will the fast reserve auction in Italy be repeated?

The fast reserve auction in Italy took place in late 2020 and saw five-year contracts to provide the service awarded to 250MW of battery systems, for the years 2023-2027. The auction’s biggest winners were Enel and France-headquartered utility Engie. However, the fast reserve auction does not look set to be repeated, Leykam adds.