Zelestra has signed a long-term tolling agreement with Swiss energy firm BKW to deliver a battery energy storage system (BESS) with up to 2 GWh capacity in northern Italy. This deal marks a first-of-its-kind financial structure for battery storage in the country.
Scope and Novelty of the Agreement
Under the agreement, Zelestra will make part of the plant’s generation capacity available to BKW. In doing so, BKW will manage and optimise flexibility in Italian power markets. This arrangement introduces a tolling model rarely seen in Italy for electrochemical storage, underscoring the growing role of EV batteries in powering a new generation of BESS projects.
The partners say this structure helps ensure predictable revenues. It also reduces risk and enhances economic sustainability. Thus, this agreement may serve as a template for future BESS projects in Italy.
Timeline, Location and Drivers
Construction of the BESS is slated to begin in 2027. Full operations are expected by 2028.
The north of Italy is a key location. Industrial electricity demand is rising there. Moreover, renewables are steadily being added to the grid. Meanwhile, thermal power plants are expected to be phased out. Thus, the need for grid flexibility is growing.
Strategic Context & Existing Partnerships
This deal builds on existing collaboration between Zelestra and BKW. Previously, in December 2024, they signed a ten-year power purchase agreement. That PPA enabled construction of two solar projects in Ginosa (Puglia) and Bellomo (Sicily) totalling 16 MWdc.
Zelestra already holds a mature Italian portfolio of about 1,400 MW in solar plus battery storage projects. The company is also preparing for upcoming auctions, for capacity and storage as well as solar tenders.
Expected Benefits & Outcomes
The project is expected to enhance grid stability. It will also help integrate more renewable energy into the system. Moreover, it supports Italy’s decarbonisation goals. In addition, the tolling model offers revenue predictability for stakeholders.
For BKW, this agreement expands its footprint in Italian renewables and in innovative storage structures. For Zelestra, it reinforces its multi-technology strategy and strengthens its presence in the Italian market.
Key Data at a Glance
Project Type Battery Energy Storage System (BESS)
Capacity Up to 2 GWh
Location Northern Italy
Construction Start 2027
Expected Operations 2028
Partners Zelestra (developer) & BKW (Swiss utility)
Prior Collaboration 16 MWdc solar projects via PPA (Ginosa & Bellomo)
Portfolio Size (Italy) 1,400 MW solar + BESS
Zelestra’s long-term tolling agreement with BKW is significant. It introduces a new financial model for large battery storage in Italy. Furthermore, it addresses rising power demand, renewables growth, and the decline of thermal plants. Also, with construction planned for 2027 and operations by 2028, the project offers near-term impact. Overall, this deal supports Italy’s energy transition.
