German utility EnBW and Spanish renewables developer Zelestra have signed a long-term tolling agreement for a 300 MW, 4-hour battery energy storage system in Emilia-Romagna, northern Italy. The deal, announced on July 16, 2026, brings Zelestra's 2 GWh storage complex to a fully secured position and marks one of the largest utility-scale battery contracts inked in Europe so far this year.
How the tolling agreement is structured
Under the agreement, Zelestra will build the battery storage project and EnBW will offtake the contracted share of the project's capacity under a long-term tolling structure. In practice, EnBW pays a fixed fee to control 300 MW / 1.2 GWh of dispatch, while Zelestra keeps development, construction and operation. Construction is expected to start in 2027, with commercial operation targeted for 2028.
Why Emilia-Romagna matters for the Italian grid
Emilia-Romagna combines strong industrial electricity demand, rising renewables penetration and growing need for flexible capacity to relieve congested grid nodes. Zelestra says the project is now among Europe's most consequential standalone battery sites and will help accelerate renewable integration and Italy's decarbonisation objectives. Olivia Barnes, EnBW's Head of Energy Transition, called Italy "a strategically relevant market" and the deal a milestone for the utility's flexibility platform.
Zelestra doubles down on European storage
Italy is one of Zelestra's fastest growing markets — the company aims to double its 1.4 GW pipeline of solar and battery projects during 2026, after landing nine contracts in Italy's FER X auctions in December 2025. Eliano Russo, CEO of Zelestra Italy, said long-term partnerships like this "make large storage assets possible" as European TSOs look for flexible capacity at scale. The deal echoes similar structured contracts across the continent, from Giga Storage's €450 million financing to Ore Energy's iron-air deal with Budget Thuis.
Reporting based on coverage from Energy Global and Power Technology.