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LONDON (ICIS)–Market actors predict growth in the Italian energy storage sector will be driven by the system balancing needs of the grid operator in the face of increasing renewable penetration and conventional plant closures. However, permitting bottlenecks remain a key concern.
EP Produzione will build 170 MW of battery energy storage systems with a two-hour storage duration at two sites. One project will be located at the company’s Fiume Santo coal-fired power plant in Sardinia, originally set up in the 1960s.
However, permitting bottlenecks remain a key concern. Figures by industry group Italia Solare put the current size of the Italian energy storage sector at approximately 450MW of total installed capacity.
Italian transmission system operator (TSO) Terna said that 1GW of storage linked to solar farms will be needed by 2025 to help maintain system adequacy, with additional 6GW of utility-scale storage needed by 2030. The majority of revenue for storage assets comes from participation in Terna’s fast reserve scheme.
Internationally, we have already implemented major projects such as the Tynemouth stand-alone storage system in the UK and the La Cabaña photovoltaic plant in Chile, which is equipped with a Battery Energy Storage System that ensures its efficiency and stability.
The second battery system will be delivered at Ferrara Energy Center, Emilia-Romagna, northern Italy, with the goal of reusing the current industrial area. EP Produzione was awarded a total of five projects in the 2025 capacity market auction, each with a 15-year off-take contract. To continue reading, please visit our ESS News website.
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