Power firm Axpo and IPP Zelestra have entered into a long-term toll for a BESS project in northern Italy, Zelestra’s second deal in July.
The 10-year toll sees Axpo effectively rent 207MW/830MWh of battery energy storage system (BESS) capacity from Zelestra.
Axpo will trade and optimise its dispatch in the electricity market in return for fixed revenues to Zelestra, which can help unlock project financing.
The project will go into construction next year for commercial operation in 2028, and is located in the region of Friuli-Venezia Giulia.
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Large-scale BESS are helping Italy integrate its growing solar and wind pipeline. In the solar-heavy south, this is in large part via MACSE, an energy storage-only capacity scheme which procured c.10GWh in September last year. Long-term publicly-backed revenues are also available in the north via the capacity market (CM).
Zelestra chose not to proceed in the MACSE auction and instead go for private market tolls, something its Italy CEO Eliano Russo discussed in detail late last year (ESN Premium access).
It was just in mid-July that Zelestra secured a separate long-term offtake deal with another power firm EnBW for 300MW of a 500MW/2,000MWh project in the Emilia-Romagna, also northern Italy.
Commenting on the Axpo deal, Russo said: “Our first BESS project in Friuli-Venezia Giulia combines a strategic location, advanced stage of development, and a robust commercial structure.”
Axpo Italia’s head of origination and structured products, Simone Rodolfi, added: “Flexible generation is a cornerstone of Italy’s energy transition. As renewable energy capacity grows, solutions like battery energy storage systems are essential to ensure grid stability and maximise the value of clean power generation.”
Axpo is also building its own projects across Europe, though is a bigger player in providing BESS tolls. It is building an 8MW/40MWh system in Rizziconi, Calabria, southern Italy.
Zelestra meanwhile is active in renewables and storage across Europe and South America.
Investor Ellomay buys project in northern Italy
Investor Ellomay Capital has signed a deal to acquire 100% of a ready-to-build (RTB) 51.75MW/207MWh BESS project in northern Italy, from an unnamed developer.
It follows acquisitions of large-scale BESS projects in Italy by IPP Sonnedix and family office Strioga Family Foundation last week.
