Zelestra, a global, multi-technology, customer-focused renewable energy company, has signed a long-term tolling agreement with EnBW, one of the largest energy companies in Germany and Europe, for a 300 MW, 4-hour battery energy storage system (BESS) at Zelestra’s BESS project in Emilia-Romagna, northern Italy.
The deal marks a significant milestone for utility scale battery storage in Europe and demonstrates the growing role of long-term contracted revenue structures in enabling large scale standalone battery storage projects. It also underscores the increasing need for flexibility in the power system to relieve the grid as renewable generation continues to grow.
Under the agreement, Zelestra will build the battery storage project and EnBW will offtake the agreed share of the project’s capacity under a long-term tolling agreement. The structure compliments EnBW’s position in the Italian power market, while enabling delivery of one of Europe’s largest battery storage projects.
With the conclusion of this additional agreement, Zelestra’s 2 GWh battery storage project is now fully secured. The project is expected to begin construction in 2027 and become fully operational in 2028.
Zelestra’s BESS project is located in Emilia-Romagna, in northern Italy, a region with strong industrial electricity demand, increasing renewable energy penetration, and a growing need for flexible capacity to support the stability and resilience of the power system. The project will help accelerate renewable integration, strengthen grid flexibility, and support Italy’s decarbonisation objectives.
Olivia Barnes, EnBW Head of Energy Transition, emphasised: “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.”
Eliano Russo, CEO, Zelestra Italy, noted: “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. 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 benefitting the wider European energy market.”
Italy is one of Zelestra’s fastest growing markets. The company aims to double its current 1.4 GW pipeline of solar and battery storage projects in 2026. In December 2025, the company secured contracts for 9 projects in Italy’s FER X auctions that will allow new solar capacity of up to 168 MW to be constructed.
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