Italy s independent energy storage power station project announcement


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6 FAQs about [Italy s independent energy storage power station project announcement]

When will energy storage capacity auction start in Italy?

The energy minister of Italy has signed a decree paving the way for an energy storage capacity auction to kick off in the first half of 2025.

Will Italy support a centralized electricity storage system?

The European Commission has approved, under the European Union’s state aid rules, a EUR 17.7 billion scheme with which Italy intends to support the establishment and operation of a centralized electricity storage system.

How will Italy's electricity storage subsidies work?

After winning clearance in Brussels, Italy can now select companies developing electricity storage projects eligible for subsidies. The mechanism is set to cover investment and operating costs through annual payments.

How many GW of electricity can a storage facility produce?

The plan is to support electricity storage facilities with 9 GW in total operating power and an overall capacity of 71 GWh until the end of 2033. The production of electricity from renewable energy sources depends on sunlight, wind and hydrology, and the electricity demand curve is different.

Where will the planned storage capacity come from?

The planned storage capacity will come from 20 projects selected by Italian grid operator Terna through the latest capacity market auction. Half of them will be located on the island of Sardinia. Italian power utility Enel has announced it secured 12.9 GW of the 41.5 GW awarded by Italian grid operator Terna in its latest capacity market auction.

What is the EU energy storage programme?

It will be led by transmission system operator (TSO) Terna. The EU approved a €17.7 billion package to fund the programme in December 2023, and Terna is aiming for it to support the deployment of 50GWh of energy storage by 2030, which is lower than the initial 71GWh forecast.

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