German utility EnBW (Energie Baden-Württemberg) has signed a long-term tolling agreement covering 300MW/1.2GWh of Zelestra’s planned 500MW/2GWh battery energy storage project in northern Italy.
Zelestra said the agreement meant the four-hour standalone BESS project, located in the Emilia-Romagna region, was now fully contracted.
Under the deal, Zelestra will construct and operate the project, while EnBW will take the agreed 300MW share of its capacity through a long-term tolling agreement.
Construction is scheduled to begin in 2027, with the project expected to become fully operational in 2028.
The companies said the agreement demonstrated the growing importance of long-term contracted revenue arrangements in financing large standalone battery storage projects.
The BESS is intended to provide flexibility as renewable generation increases in Italy, helping to relieve pressure on the grid and support system stability. Emilia-Romagna has substantial industrial electricity demand, growing renewable energy penetration and an increasing requirement for flexible capacity.
Olivia Barnes, EnBW head of energy transition, said: “Battery storage is becoming a cornerstone of our modern, energy system. 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.”
Eliano Russo, CEO of Zelestra Italy, said: “The Italian grid needs flexible capacity, and it needs it at scale. 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.
“Zelestra’s experience developing battery storage projects in Spain, Germany and Italy, combined with EnBW’s presence and expertise across key European power markets, helps make these major projects easier to structure and deliver. By working with customers operating in multiple markets, we can accelerate the deployment of flexible capacity at scale, supporting renewable integration, strengthening security of supply and benefiting the wider European energy market.”
Zelestra said Italy was one of its fastest-growing markets and that it intended to double its existing 1.4GW pipeline of solar and battery storage projects during 2026.
In December 2025, the company secured contracts for nine projects through Italy’s FER X renewable energy auctions, allowing it to develop up to 168MW of new solar capacity.
Zelestra is backed by investment organisation EQT and develops, commercialises, constructs and operates large-scale renewable energy projects.
EnBW, which supplies energy to around 5.5 million customers, plans to invest up to €50 billion by 2030 in areas including electricity, gas and hydrogen networks and renewable generation. The German company is targeting net-zero greenhouse gas emissions from its own operations by 2040.
Zelestra said the agreement meant the four-hour standalone BESS project, located in the Emilia-Romagna region, was now fully contracted.
Under the deal, Zelestra will construct and operate the project, while EnBW will take the agreed 300MW share of its capacity through a long-term tolling agreement.
Construction is scheduled to begin in 2027, with the project expected to become fully operational in 2028.
The companies said the agreement demonstrated the growing importance of long-term contracted revenue arrangements in financing large standalone battery storage projects.
The BESS is intended to provide flexibility as renewable generation increases in Italy, helping to relieve pressure on the grid and support system stability. Emilia-Romagna has substantial industrial electricity demand, growing renewable energy penetration and an increasing requirement for flexible capacity.
Olivia Barnes, EnBW head of energy transition, said: “Battery storage is becoming a cornerstone of our modern, energy system. 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.”
Eliano Russo, CEO of Zelestra Italy, said: “The Italian grid needs flexible capacity, and it needs it at scale. 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.
“Zelestra’s experience developing battery storage projects in Spain, Germany and Italy, combined with EnBW’s presence and expertise across key European power markets, helps make these major projects easier to structure and deliver. By working with customers operating in multiple markets, we can accelerate the deployment of flexible capacity at scale, supporting renewable integration, strengthening security of supply and benefiting the wider European energy market.”
Zelestra said Italy was one of its fastest-growing markets and that it intended to double its existing 1.4GW pipeline of solar and battery storage projects during 2026.
In December 2025, the company secured contracts for nine projects through Italy’s FER X renewable energy auctions, allowing it to develop up to 168MW of new solar capacity.
Zelestra is backed by investment organisation EQT and develops, commercialises, constructs and operates large-scale renewable energy projects.
EnBW, which supplies energy to around 5.5 million customers, plans to invest up to €50 billion by 2030 in areas including electricity, gas and hydrogen networks and renewable generation. The German company is targeting net-zero greenhouse gas emissions from its own operations by 2040.
Photo: Zelestra BESS units during the installation process in Karlsruhe, Germany, July 16, 2026
Credit: Zelestra
