EnBW and Zelestra have entered into a long-term tolling agreement covering 300 MW of a major battery energy storage system project in the Emilia-Romagna region of northern Italy, marking what both companies describe as a significant milestone for utility-scale battery storage in Europe.

Deal Structure and Project Scope

The agreement gives EnBW a 300 MW share of Zelestra's approximately 500 MW battery storage project, configured as a four-hour system that will deliver around 1.2 GWh of storage capacity to Italy's power grid. Under the terms of the tolling arrangement, Zelestra will build the project while EnBW will offtake the agreed share of the project's capacity over the long term.

The project is located in Emilia-Romagna, a region that the companies characterize as having strong industrial electricity demand, increasing renewable energy penetration, and a growing need for flexible capacity. Construction is scheduled to begin in 2027, with full operations anticipated in 2028.

The EnBW agreement represents the final piece needed to fully secure Zelestra's broader 2 GWh battery storage project at the site. With this deal concluded, the entire project now has contracted revenue structures in place.

Why Italy and Why Now

Italy is described by Zelestra as one of its fastest-growing markets. The company currently holds a 1.4 GW pipeline of solar and battery storage projects in the country and has stated an ambition to double that pipeline this year.

In December 2025, Zelestra secured contracts for nine projects in Italy's FER X auctions, which will allow the construction of up to 168 MW of new solar capacity.

The Emilia-Romagna site was selected in part because of its geographic and grid characteristics. The region's combination of industrial electricity demand and growing renewable generation creates conditions where large-scale storage can play a meaningful role in stabilizing the power system.

The project is intended to support Italy's decarbonization objectives by facilitating the integration of additional renewable energy sources onto the grid.

Olivia Barnes, EnBW's Head of Energy Transition, framed the agreement as strategically important for the German utility's presence in Italy. "Italy's rapidly growing renewables sector and evolving power market offer attractive opportunities for innovative flexibility solutions," Barnes said.

"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 of Zelestra Italy, pointed to the scale of the project as a defining feature. "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," Russo said.

Tolling Agreements as an Enabling Structure

Both companies highlighted the tolling agreement structure as a mechanism that makes large-scale standalone battery storage projects financially viable. The deal illustrates what the parties describe as the growing role of long-term contracted revenue arrangements in unlocking capital for infrastructure of this scale.

Russo noted that Zelestra's experience developing battery storage projects across Spain, Germany, and Italy, combined with EnBW's presence across key European power markets, simplifies the process of structuring and delivering major storage projects. He described working with customers operating across multiple markets as a factor that can accelerate the deployment of flexible capacity at the European level.

EnBW's Broader Investment Strategy

For EnBW, the agreement extends the company's footprint in a strategically relevant international market. The Karlsruhe-based utility, which employs around 31,500 people and supplies energy to approximately 5.5 million customers, has articulated a plan to invest up to 50 billion euros by 2030, with around 85 percent of that investment directed toward Germany.

The company has set a target for renewable energies to comprise approximately 80 percent of its generation portfolio by 2030, and has committed to achieving net zero greenhouse gas emissions from its own operations by 2040.

The Italian battery storage deal sits within that broader strategic context, with Barnes describing it as part of EnBW's positioning as an enabler of the energy transition and a partner in markets where renewable growth is creating demand for flexible grid infrastructure.

About the Companies

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

The company was recently ranked by BloombergNEF among the top ten sellers of clean energy to corporate customers, both globally and in the United States. Zelestra is backed by EQT, a global investment organization with more than 269 billion euros in assets under management.

EnBW Energie Baden-Württemberg AG is one of Germany's largest energy companies and operates across all stages of the energy value chain, from generation and trading to grid operation and the sale of electricity, heat, and gas.

The company's transformation strategy focuses on expanding distribution and transmission grids for electricity, gas, and hydrogen alongside continued growth in renewable energy generation.

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