Policy changes in Italy are expected to have a significant impact on the European energy storage market, potentially leading to changes in local energy storage installations in 2024.
Three key factors are poised to shape the trajectory of battery energy storage system deployment in the short and medium term: the pace of photovoltaic installations, the availability of funding incentives for BESS, and the role of grid-scale tenders.
"It is reasonable to expect that, when fully operational, all new renewable energy plants will already be installed with integrated storage systems. And where the market does not cover the...
A panel titled "Interactive Deep Dive Italy: Choosing the best path for BESS ROI in Italy – MACSE, capacity market, or merchant strategies?" at the Battery Business & Development Forum 2025 highlighted that the Italian battery storage market is very different from other European markets.
The energy storage market in Italy saw a significant uptick in 2024, marked by a notable increase in stand-alone connections, a significant step towards the path of energy transition.
Policy changes in Italy are expected to have a significant impact on the European energy storage market, potentially leading to changes in local energy storage installations in 2024.
These developments suggest Italy''s storage sector might not just meet its 2025 targets - it could potentially exceed them. The question isn''t whether storage will transform Italy''s energy landscape, but how quickly consumers and businesses can adapt to the new opportunities.
As Italy''s energy mix is increasingly composed of variable renewable energy sources, electricity storage will be needed to integrate power generated by renewables into the national grid and make it available when sun and wind energy are not accessible.
Italy''s energy mix is like a well-crafted risotto—complex but delicious. With 55% of electricity already coming from renewables (hello, hydro and solar!), the country''s next challenge is storing excess energy. Enter stage left: battery storage systems, pumped hydro, and some seriously smart tech.
Italy''s appetite for energy storage seems to be growing by the month. The country is one of just a handful in Europe that includes energy storage in its national energy and climate plan, with a target of 6 GW of capacity by 2030.
Industry experts agree that these initiatives not only enhance grid reliability and system flexibility but also provide promising market prospects for companies specializing in advanced energy storage solutions.
In addition, electricity storage is critical to avoid congestion in the power grid since most of the renewable production originates in Southern Italy but is consumed mostly in the north. Therefore, PNIEC also provides for the installation of new energy storage infrastructure with the aim of reaching 22.5 GW of installed storage capacity by 2030.
Therefore, battery energy storage systems (BESS) are needed in Italy. The Italian market for BESS is growing rapidly and currently amounts to 2.3 GW but it almost exclusively consists of residential scale systems, associated with small scale solar plants, having a capacity of less than 20 kWh.
As the penetration of solar power increases, grid stability has become a critical issue. In response, Italy is prioritizing the development of grid-scale battery energy storage systems (BESS Italy) alongside new industrial and commercial energy storage projects.
Residential storage installations in Italy are particularly sensitive to policy changes. The country operates under a net metering policy for residential PV generation, where households with grid-connected solar panels can feed excess electricity production back to the grid at retail prices.
According to ANIE data, as of 30 June 2023, a total of 3,045MW/ 4,893MWh of ESS capacity were installed in Italy, of which 776MWh of residential storage capacity were installed in Q2 of 2023, a 13% decline from the previous year. The reduction is mainly due to the retreat of Superbonus subsidy policy.
This scheme offers a subsidy of up to 110%. According to ANIE data, as of 30 June 2023, a total of 3,045MW/ 4,893MWh of ESS capacity were installed in Italy, of which 776MWh of residential storage capacity were installed in Q2 of 2023, a 13% decline from the previous year.
