Italy’s energy storage landscape is undergoing a major shift, with utility-scale battery energy storage systems (BESS) experiencing exponential growth in 2024, even as residential and commercial & industrial (C&I) installations decline, according to a new report by industry group Anie.
Utility-Scale BESS Dominates Market
Italy significantly expanded its energy storage capacity last year, driven by large-scale projects exceeding 1 MWh. Anie, a division of national business organization Confindustria, reported that installed storage capacity surged from 507 MWh in 2023 to 3,359 MWh in 2024, while installed power capacity jumped from 222 MW to 851 MW.
A key factor behind this growth was the activation of 14 new standalone storage plants, each exceeding 10 MWh, including two massive 800 MWh facilities. These projects, incentivized by grid operator Terna’s capacity market auctions, contributed 3,310 MWh of capacity and 811 MW of power to the grid.
Residential and C&I Sectors See Decline
Despite the boom in utility-scale storage, Terna’s registration data revealed a drop in residential and C&I battery installations. The reasons behind this decline were not detailed in the report, but the trend suggests a shift in focus toward larger, grid-connected storage solutions.
Outlook for Italy’s Energy Storage Market
The rapid expansion of utility-scale BESS highlights Italy’s push to enhance grid stability and integrate renewable energy. Meanwhile, the slowdown in smaller-scale deployments raises questions about market dynamics and potential policy adjustments needed to support broader adoption across all sectors.
As Italy continues to scale up its energy storage infrastructure, the dominance of large BESS projects signals a transformative phase in the country’s energy transition.
