EnBW has signed a long-term tolling agreement for 300 MW of Zelestra's roughly 500 MW, four-hour battery storage project in Emilia-Romagna, northern Italy. The deal fully secures Zelestra's 2 gigawatt-hour battery storage project, the company said.
Under the agreement, Zelestra will build the battery storage project and EnBW will offtake the agreed 300 MW share of its capacity under the long-term tolling contract. In a tolling agreement, the offtaker pays for the right to use a set share of a storage asset's capacity rather than buying power outright, giving the developer contracted revenue it can use to finance construction.
Timeline and location
Construction on the project is due to start in 2027, with full operations anticipated in 2028. The project sits in Emilia-Romagna, a region EnBW and Zelestra describe as having strong industrial electricity demand and rising renewable energy penetration. Both companies say that combination is driving a need for flexible capacity to support Italy's power system.
What each side said
Olivia Barnes, EnBW's head of energy transition, called the agreement "an important milestone in a strategically relevant market." She said Italy's renewables sector and power market are creating openings for flexibility deals, and that EnBW is combining its flexibility expertise with Zelestra's renewable development experience to deliver the project.
Eliano Russo, chief executive of Zelestra Italy, said "the Italian grid needs flexible capacity, and it needs it at scale." He said the agreement with EnBW is the kind of long-term partnership that makes large storage assets possible, and called the Emilia-Romagna project "one of Europe's most consequential projects" once it comes online. Russo pointed to Zelestra's experience developing battery storage in Spain, Germany, and Italy, paired with EnBW's presence across European power markets, as a way to structure and deliver large storage projects.
Zelestra's push in Italy
Italy is one of Zelestra's fastest-growing markets. The company aims to double its current 1.4 gigawatt pipeline of solar and battery storage projects this year. In December 2025, Zelestra secured contracts for nine projects in Italy's FER X auctions, covering up to 168 MW of new solar capacity.
