Italy Aims for California-Level Battery Storage Capacity
Why this is here: The auction organized by Terna saw all 10 gigawatt-hours of storage capacity for Southern Italy and the islands allocated, with bids averaging 13,000 euros per megawatt-hour annually—well below the regulator's cap.
Italy is poised to have 1.9 gigawatts of large-scale battery storage capacity by the end of 2025, representing 20% of the European Union’s total. The country currently has projects underway, authorized, or announced for an additional 10 gigawatts of battery capacity. If completed, this would increase Italy’s capacity almost sixfold.
Analysts at Ember suggest these batteries could cover roughly one-fifth of peak evening electricity demand, reducing reliance on expensive gas-fired power plants. Italy’s trajectory mirrors California’s, which increased its battery capacity from 2 to 13 gigawatts in four years.
The first auction for electricity storage capacity, organized by Terna, successfully allocated 10 gigawatt-hours for Southern Italy and the islands, with competitive pricing demonstrating investor interest. The cost of battery technology has fallen by 20% annually since 2015, making storage increasingly financially viable.