Axpo (energy producer) has entered into a long-term physical tolling agreement with renewable energy company Zelestra for a 207 MW battery energy storage system planned for the Friuli-Venezia Giulia region of northeastern Italy, marking the Swiss energy giant's first BESS agreement in the Italian market.

Deal Details and Project Specifications

The ten-year contract covers a utility-scale battery energy storage system that will deliver approximately 830 MWh of storage capacity. The project will be built, owned, and operated by Zelestra, with construction expected to commence in 2027 and commercial operations scheduled for 2028.

Under the terms of the agreement, Axpo will provide optimisation services designed to enable the BESS to integrate increasing volumes of renewably generated electricity while also delivering flexibility services to the Italian electricity grid.

The agreement's structure is also intended to provide long-term revenue visibility for Zelestra, a commercial arrangement that both companies describe as instrumental in enabling the kind of large-scale infrastructure investment that the Italian energy system increasingly requires.

Strategic Location in a Key Industrial Region

The project is situated in Friuli-Venezia Giulia, in northeastern Italy, a region described by Zelestra as one of Italy's most heavily industrialised. The location is central to the project's strategic rationale, with battery storage capacity in the area expected to support the growing adoption of renewable energy across the region's dense industrial base.

Zelestra Italy CEO Eliano Russo emphasised the significance of both the site and the commercial framework behind the deal. "Our agreement with Axpo shows how long-term partnerships with leading energy market participants can accelerate investment in the flexible infrastructure that the country needs," Russo said. "Our first BESS project in Friuli-Venezia Giulia combines a strategic location, advanced stage of development, and a robust commercial structure."

Zelestra's Growing Footprint in Italian Storage

Russo noted that the project, combined with Zelestra's existing authorised battery storage capacity, positions the company as the second-largest owner of authorised battery storage capacity in Italy, at a total of 970 MW.

The announcement follows a series of storage-related agreements Zelestra has pursued in the Italian market, including a tolling agreement with BKW for a 2 GWh battery storage project announced in September 2025 and a partnership with EnBW covering approximately 1.2 GWh of flexibility capacity, announced in July 2026.

Zelestra describes itself as a vertically integrated company specialising in the development, commercialisation, construction, and operation of large-scale renewable energy projects.

The company is backed by EQT, a global investment organisation with more than 291 billion euros in assets under management, and was recently ranked by BloombergNEF among the top ten sellers of clean energy to corporate customers, both globally and in the United States.

Axpo's First BESS Step in Italy

For Axpo, the agreement represents its inaugural move into battery energy storage in Italy. Simone Rodolfi, Head of Origination and Structured Products at Axpo Italia, described flexible generation as a cornerstone of Italy's energy transition and pointed to the deal as evidence of the company's commitment to innovative energy solutions in the Italian market.

"As renewable energy capacity grows, solutions like battery energy storage systems are essential to ensure grid stability and maximise the value of clean power generation," Rodolfi said.

"Our landmark partnership demonstrates Axpo's commitment to innovative energy solutions and strengthens our position in the Italian market as a trusted partner for origination and risk management. The agreement has the potential to open new opportunities in the rapidly growing storage sector."

Axpo describes itself as Switzerland's largest energy producer and an international leader in energy trading and the marketing of solar and wind power. The company employs approximately 7,500 people and operates in more than 30 countries across Europe, North America, and Asia.

Commercial Structures as Enablers of Grid Investment

Both companies framed the tolling agreement as part of a broader trend in which long-term commercial partnerships are becoming a critical mechanism for mobilising capital into large-scale energy storage infrastructure.

The structure of the deal provides Axpo with operational control over the asset's optimisation while insulating Zelestra from near-term revenue uncertainty, a model that industry participants have increasingly pointed to as a way of de-risking storage investments in markets where merchant revenues alone may not be sufficient to justify development costs.

The agreement is designed to support the resilience of Italy's electricity transmission system while also contributing to the country's broader energy transition goals.

Italy's electricity grid faces growing pressure as the share of variable renewable generation rises, increasing demand for flexible assets capable of absorbing surplus power and releasing it when generation falls short of demand.

The Friuli-Venezia Giulia project now joins a pipeline of large-scale Italian battery storage initiatives that Zelestra has advanced through similar commercial arrangements with major European energy companies, reinforcing a pattern in which tolling agreements are emerging as the dominant financing tool for utility-scale BESS development in the Italian market.

Powering Smarter Decisions Across Italy's Energy Sector

When power infrastructure investment is accelerating, and competition for utility contracts across Italy has never been fiercer, can your business afford to rely on fragmented data and outdated intelligence? Staying ahead means knowing where projects are, where they are heading, and who is winning the work before your competitors do.

The Global Project Tracking (GPT) platform by Blackridge Research brings together the full spectrum of Power project activity across Italy into a single, structured intelligence environment. Whether you are monitoring grid expansion, water treatment facilities, or renewable energy infrastructure, the platform delivers the timely, actionable data your teams need to make confident commercial decisions.

From early-stage pipeline opportunities to fully delivered schemes, the GPT platform ensures your business has continuous visibility across every phase of the project lifecycle, giving you the strategic edge in one of Italy's most dynamic infrastructure markets.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

Discover how power firms across Italy are transforming their business development strategies with the Global Project Tracking (GPT) platform by Blackridge Research. Book a Free Demo today and see the intelligence for yourself.