Storage key to cutting gas dependence, says Italian solar alliance

Energy storage will become increasingly important for managing Italy’s electricity system as renewable deployment accelerates, according to Alleanza per il Fotovoltaico, an Italian PV industry group.

Filippo Fontana, a spokesperson for the organization, told pv magazine Italia that storage can reduce price volatility by shifting renewable generation from periods of surplus to times of higher demand. He said this is particularly important in Italy, where natural gas still accounts for about 40% of the country’s energy supply and 96% of gas was imported in 2024.

Fontana said the need for storage becomes even more pronounced during periods of extreme heat, when electricity demand for air conditioning remains high after solar generation declines in the evening.

He said Italy is expected to add more than 65 GW of renewable generation by 2030 compared with 2023 levels, making storage increasingly important for reducing grid congestion, limiting renewable energy curtailment, and improving overall market efficiency.

He said it is not possible to quantify how much gas storage alone could save because the outcome will depend on the simultaneous expansion of renewable generation, storage, electricity networks, and electrification. However, he said greater storage capacity will allow more domestically generated renewable electricity to be used, reducing reliance on thermal power generation and imported fossil fuels. He noted that Italy aims for renewables to meet about 63% of electricity demand by 2030, up from just over 42% of generation in 2023.

Fontana said falling battery prices are accelerating storage deployment but do not change its strategic importance. He noted that lithium-ion battery prices have fallen by about 90% since 2010 and are expected to decline by another 40% by 2030. In Italy, he said the cost of four-hour utility-scale battery systems has fallen by about 40% to 45% since 2022.

He added that while lithium-ion batteries are an effective short-duration technology, Italy will also need long-duration energy storage to meet future electricity demand. He said such technologies are expected to become commercially available before 2030 and that preparations for their deployment should begin now.

Fontana also welcomed the European Commission’s recent measures to strengthen battery manufacturing in Europe. He said support for cell production and critical raw materials could help reduce dependence on imports, strengthen supply chains, and support the growth of a European battery industry.

From pv magazine Italia