Recurrent Energy, a subsidiary of Canadian Solar Inc. and a leading developer, owner, and operator of solar and energy storage assets, and Octopus Energy, a global clean energy company, have signed an optimisation agreement for a 14 MW/43 MWh battery energy storage asset (BESS), which is co-located with a 35 MWp photovoltaic (PV) plant named ‘Montalto La Viola’.
Both assets are majority-owned by Recurrent Energy and are located in Montalto di Castro, Italy.
Under the deal, Octopus Energy will act as the trading partner, managing and optimising the BESS asset, which was recently connected, while the co-located PV plant has been operational since 2025. Octopus Energy will use Kraken – the artificial intelligence (AI)-powered operating system for energy – to control, dispatch, and manage the battery, ensuring the company can optimise demand and generation in real time, maximise asset value, and reduce imbalance costs.
This partnership represents a key milestone in the growth and positioning of both companies within the Italian storage market. It highlights their role in advancing decarbonisation and supporting grid stability, while reinforcing a shared commitment to delivering renewable solutions that are reliable, flexible, and cost-competitive.
Alex Schoch, Director of Electrification at Octopus Energy, commented: “As more renewables come online, flexibility becomes the backbone of our energy system. Batteries can store cheap, clean power when it is abundant which can then be used or exported when it is needed most, helping to balance the grid and reduce reliance on expensive fossil fuels. That helps build a more resilient grid, but, crucially, it helps cut household energy bills too. This partnership with Recurrent Energy marks a step towards building a smarter, more flexible energy system in Italy.”
Devrim Celal, Chief Flexibility Officer at Kraken, added: “Batteries are a crucial building block of a modern, renewable-powered energy system. By managing solar and storage together, in real time, Kraken helps bring down costs, unlock new revenue streams, and delay expensive upgrades to the grid. Together with Recurrent Energy and Octopus Energy, we’re bringing these benefits to Italy – accelerating the transition to a smarter, cleaner energy system.”
Dylan Marx, CEO of Recurrent Energy, concluded: “This milestone marks our first optimisation structure and accompanies the commissioning of our first co-located BESS connected in Europe – among the earliest of its kind to become operational in Italy. The optimisation agreement underscores our strategy of combining multiple revenue streams while strengthening grid security, performance, and adaptability. We are proud to collaborate with Octopus Energy on this landmark transaction and commend our teams for successfully delivering and integrating technical, commercial, and financial technologies and capabilities throughout the entire project lifecycle, setting a benchmark at both national and global levels.”
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
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