Italy enters top 10 most attractive battery storage investment markets

Italy has emerged as one of the world’s most attractive markets for battery energy storage investment, according to DLA Piper’s Capital Unlocks Capacity report, which surveyed 550 industry participants across the global storage value chain.

The study, conducted between Feb. 27 and March 9, 2026, included 50 respondents in each of 11 markets, spanning the United Kingdom, United States, Italy, France, Germany, Australia, China, Canada, the Middle East, East Asia and Latin America.

According to the report, battery investment is increasingly concentrating in markets that offer a favorable combination of local supply chain strength, predictable regulation, grid access and bankable revenue models.

The United States remained the most attractive market, selected by 25% of respondents, followed by the United Kingdom at 19% and China at 14%. Italy ranked among the global top 10, with 8% of investors identifying it as their preferred market for battery storage investments over the next three years.

A key factor supporting Italy’s position is the country’s planned electricity storage capacity market, known as MACSE, which introduces long-term capacity contracts for storage assets. DLA Piper said investors view the mechanism as a way to improve revenue visibility and enhance project bankability.

The report found that predictable market rules, robust revenue structures and access to grid connections are among the most important considerations shaping investment decisions worldwide.

It also highlighted growing investor interest in ready-to-build projects, which are generally viewed as lower risk and quicker to execute than early-stage developments. More than 70% of respondents said they found hybrid projects combining generation, storage and energy consumption attractive, with integrated models emerging as the preferred approach in Italy.

DLA Piper said 43% of investors favor so-called “Goldilocks” opportunities: advanced-stage development projects offering a balance between the higher risks of greenfield assets and the lower returns typically associated with operational projects.

Half of respondents indicated they target internal rates of return of between 11% and 12%, while only 3% seek returns above 15%, suggesting a preference for investments where risks remain but can be clearly understood and appropriately priced.

The report also found increasing interest in long-duration energy storage, identified as a strategic priority by 31% of investors. According to DLA Piper, future growth in the sector is likely to favor developers with strong execution capabilities and robust financing structures.

From pv magazine Italia