Octopus Energy Generation, one of Europe’s largest specialist renewables investors, and ZE Energy, have struck a deal to back one of Italy’s biggest battery projects, giving a major jolt to the country’s clean energy ambitions.
ZE Energy's Monfalcone battery storage project in Italy. Image Credit: ZE Energy
The partners have jointly invested in the Sessa Aurunca project in Campania, developed by ZE Energy, an independent renewable power producer and key player in European battery storage solutions.
The battery will store up excess green power when the sun is shining and wind is blowing, and send it back to the grid when homes and businesses need it.
The site is in the final stages of development, with construction due to start this summer. It is expected to be operational by 2028. Once switched on, it will become the largest standalone battery in south-central Italy.
The battery will be able to store enough electricity to meet the daily needs of around 130,000 Italian homes. With a powerful 98.5 MW / 895 MWh capacity, it will connect to a substation serving several power producers, creating a local energy hub to keep clean electricity flowing smoothly in the grid.
The project has won support through Italy’s flagship MACSE tender scheme from system operator Terna, securing a fixed 15-year contract and accounting for 42% of capacity awarded in the region.
For ZE Energy, the deal marks a step change in its Italian strategy, confirming the ability to develop and deliver large-scale battery storage projects in a particularly competitive market.
Octopus’ investment, on behalf of the Sky fund (ORI SCSp) it manages, marks the latest in a string of Italian deals by Octopus Energy Generation’s fund management team.
Octopus’ generation arm has a significant pipeline of Italian projects through investments in developers creating over 2 GW of new battery storage sites, wind and solar farms, and rooftop solar projects for businesses.
This latest deal comes as Italy races towards ambitious clean energy targets: generating 70% of its electricity from renewables by 2030, backed by 10 GW of battery storage.
Alex Brierley, Co-head of Octopus Energy Generation’s fund management team, said: “Wind and solar are the cheapest form of energy, but too often this clean, cheap energy goes to waste. Batteries fix that. They soak up every spare electron and release them when needed, cutting waste and bringing bills down for people. That’s why this project is so important for Italy.”
Nicolas Wolff, CEO of ZE Energy said: “With its ambition of reaching 10 GW of battery capacity and 80 GW of solar PV by 2030, Italy is a key country in our 2030 strategic plan. Our conviction is simple: solar will only be able to scale up if it is combined with storage solutions capable of better integrating it into the grid, making it more dispatchable and improving its value. This partnership with Octopus Energy Generation is a tremendous accelerator that will help us reach our target of 1.5 GW of installed capacity by 2030."