ZE Energy, Octopus back 895 MWh battery project in Italy

ZE Energy has signed a co-investment agreement with Octopus Energy Generation to develop the Sessa Aurunca battery project in Italy.

Developed by ZE Energy, the standalone battery project will have a capacity of 98.5 MW 895 MWh and is expected to rank among Italy’s largest when it enters service in 2028. The project secured capacity in the MACSE auction launched by Italian transmission system operator Terna to accelerate energy storage deployment. It benefits from a 15-year revenue contract and accounts for 42% of the capacity awarded in its region.

The project will connect to a substation serving multiple electricity producers, functioning as a local energy hub intended to support the integration and transfer of renewable electricity across the grid.

Under the agreement, Octopus Energy Generation will invest, through its Sky – ORI SCSp fund, about half of the equity required to build the project. ZE Energy will complete development and deliver the battery system and its grid connection through a private substation.

ZE Energy, which operates in France, Germany, and Italy, has identified Italy as a cornerstone of its strategy through 2030. Italy aims to source 70% of its electricity from renewables by 2030 and is targeting 10 GW of battery storage capacity to support that transition.

Nicolas Wolff, president of ZE Energy, said Italy is a key market for the company given the country’s expected growth in battery storage and solar capacity through the end of the decade. He said large-scale solar deployment will increasingly depend on storage systems that improve grid integration, flexibility, and asset value, adding that the partnership supports ZE Energy’s goal of reaching 1.5 GW of installed capacity by 2030.

Alex Brierley, co-head of fund management at Octopus Energy Generation, said the investment builds on the company’s existing presence in Italy, where it already has a pipeline of more than 2 GW spanning battery storage, wind, utility-scale solar, and commercial rooftop PV projects.

From pv magazine France