Zelestra has signed contracts covering 1.5TWh of electricity under Italy’s Energy Release 2.0 mechanism, as it expands its renewable energy and storage footprint in the country.
The agreements, signed with multiple industrial customers, include a long-term deal with paper supplier Burgo Group covering 950GWh of supply. The contracts are designed to provide stable, long-term access to renewable electricity while supporting the development of new generation capacity.
Energy Release 2.0, administered by Gestore dei Servizi Energetici (GSE), links industrial power demand with the rollout of new renewable energy projects. The framework enables structured, medium- to long-term contracts intended to improve revenue visibility for developers and reduce exposure to wholesale price volatility for energy-intensive industries.
Zelestra targeting 3GW of installed capacity this year
For Zelestra, the contracted volumes are expected to underpin both existing and new solar capacity in Italy, where the company is targeting close to 3GW of installed capacity by the end of 2026. The company is also expanding its presence in battery energy storage, reflecting the growing need for flexibility as renewable penetration increases.
The agreement with Burgo Group is intended to support the decarbonisation of industrial operations by providing predictable renewable power supply. For developers, mechanisms such as Energy Release 2.0 are increasingly seen as a route to financing new projects by securing long-term offtake agreements with industrial users.
Zelestra operates in Italy as an integrated developer, covering project development, construction and operation across solar and battery energy storage. The company has been scaling its portfolio in Europe, including recent activity in Spain combining power purchase agreements with energy storage.
Photo of photovoltaic plant in Italy by Sungrow EMEA on Unsplash
