Zelestra and BKW have signed an innovative long-term tolling agreement to develop one of Europe’s largest battery energy storage systems (BESS) with a capacity of up to 2 GWh in northern Italy. The project is scheduled to commence construction in 2027 and become fully operational in 2028.
This agreement marks Italy’s first long-term financing model of its kind for battery energy storage. Under the terms of the agreement, Zelestra will allocate a portion of the project’s capacity to BKW for managing and optimizing power flexibility in the market.
This innovative collaboration between two strong partners will enable the realization of one of Europe’s largest battery energy storage projects. The project reinforces Zelestra’s strategy of working with partners to develop innovative solutions for decarbonizing its operations. By commercializing this BESS project, BKW will expand its commitment to renewable energy and innovative BESS structures in Italy.
Northern Italy faces substantial electricity demand from industrial customers, coupled with increasing grid integration of renewable energy and the planned phase-out of thermal power plants. The large-scale BESS project by Zelestra and BKW adopts an innovative approach aimed at enhancing grid flexibility, accelerating renewable energy integration, supporting the decarbonization of Italy’s power generation, and improving supply security.
This latest agreement deepens and expands Zelestra’s collaboration with BKW in the clean energy sector. In December 2024, the two parties signed a 10-year power purchase agreement (PPA) that facilitated the construction of two solar projects—Ginosa in Apulia and Bellomo in Sicily—with a total capacity of 16 MWdc.
Zelestra boasts a mature project pipeline of approximately 1,400 MW in solar and BESS projects across Italy. The company plans to participate this year in MACSE and Capacity Market auctions for BESS projects, as well as FER-X auctions for solar projects.
