Zelestra and BKW have signed a long-term tolling agreement for the delivery of a 2 GW battery energy storage system (BESS) project in northern Italy. As part of the agreement, Zelestra will allocate a share of the plant’s generation capacity to BKW, allowing it to manage and optimise flexibility in the market. 

Additionally, construction for the project is scheduled to begin in 2027, and is expected to become fully operational in 2028. In December 2024, the two companies concluded a ten-year power purchase agreement for the construction of two solar projects, Ginosa (Puglia) and Bellomo (Sicily), totalling 16 MWdc. Zelestra has a portfolio of around 1,400 MW of solar and BESS projects in Italy.

Earlier this month, Zelestra commenced the commercial operations at the 50.4 MWdc José Cabrera solar plant in Guadalajara, Spain. The project, backed by a long-term virtual PPA with Graphic Packaging, will generate 83 GWh of clean energy annually. The company has a project portfolio of more than 6 GW in Spain.

REGlobal’s Views: Increasing renewable energy penetration in northern Europe has made BESS a critical component of the value chain. This region is heavily industrialised with high electricity demand, and large BESS volumes are important to maintain grid stability. The country has witnessed many new BESS projects being announced to keep up with the increasing demand for firm renewable power.