• EnBW will contract 300 MW of four-hour storage capacity, equal to about 1.2 GWh, from Zelestra’s Emilia-Romagna project.
• The long-term tolling agreement provides contracted revenue for a major standalone battery asset in Italy.
• Construction is scheduled to begin in 2027, with full operations expected in 2028.

EnBW has secured a 300 MW share of Zelestra’s planned battery energy storage project in northern Italy, giving the German utility access to about 1.2 GWh of flexible capacity.

The companies signed a long-term tolling agreement covering four hours of storage at the Emilia-Romagna development. The wider project will have capacity of approximately 500 MW and store about 2 GWh of electricity.

Under the structure, Zelestra will finance, build and operate the battery facility. EnBW will contract the agreed portion of its capacity and use it within the Italian electricity market.

The arrangement gives Zelestra long-term revenue visibility while strengthening EnBW’s flexibility portfolio. It also reflects the growing use of contracted agreements to finance large standalone battery projects across Europe.

Construction is expected to start in 2027. Full commercial operations are planned for 2028.

Contracted revenues support battery investment

Battery storage projects can earn income through energy trading, balancing markets and grid services. However, those revenues can be volatile and difficult to forecast over long investment periods.

Tolling agreements can reduce that exposure. The asset owner receives contracted payments for making capacity available, while the offtaker manages how the battery participates in power markets.

For developers, this structure can improve bankability and support access to project finance. For utilities, it provides operational control over flexible assets without requiring full ownership.

The EnBW agreement covers the remaining capacity needed to secure Zelestra’s 2 GWh project, according to the companies. That leaves the full development backed by long-term commercial arrangements before construction begins.

“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,” said Olivia Barnes, EnBW Head of Energy Transition.

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Storage demand grows with renewables

The project will be built in Emilia-Romagna, one of Italy’s largest industrial regions. Electricity demand is high, while renewable generation is expanding across the country.

Solar and wind output can fluctuate throughout the day. Batteries can absorb surplus electricity when production exceeds demand, then release it when the system requires additional power.

That flexibility can reduce curtailment, ease pressure on transmission infrastructure and support grid stability. It can also lower reliance on fossil fuel plants used to manage short-term demand changes.

“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,” said Eliano Russo, CEO, Zelestra Italy.

“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.”

Italy becomes a priority growth market

Italy is among Zelestra’s fastest-growing markets. The company plans to double its current 1.4 GW pipeline of solar and battery storage projects during 2026.

In December 2025, Zelestra secured contracts for nine projects through Italy’s FER X renewable energy auctions. Those awards could support construction of up to 168 MW of new solar capacity.

For investors and energy executives, the EnBW agreement illustrates how Europe’s storage market is moving beyond short-term merchant revenues. Long-term contracts are becoming central to financing large projects and allocating market risk.

The deal also carries wider regional importance. As European countries add renewable capacity, battery storage will increasingly shape power prices, grid resilience and security of supply. Italy’s ability to attract large contracted projects could influence how other markets structure the next wave of flexible infrastructure.