Italy is on track to exceed 2 GW of battery capacity by 2026.

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Just two years ago, Italy had less than 100 MW of utility-scale storage—just a fraction of what the UK or Germany had already built.

Today, Italy boasts one of the most active development pipelines in Europe, with over 6 GW of battery projects ready to build. Capacity market auctions and the new MACSE mechanism are providing developers with strong investment signals.

If you have any questions about this article, contact the author at timothee@modoenergy.com.

Key takeaways

• Italy's operational battery fleet will reach 1.9 GW and 7.3 GWh by the end of 2025.
• Enel controls over 85% of operational capacity, having brought most of its portfolio online in 2024 and 2025.
• Sardinia hosts nearly half the fleet. Dedicated volumes in Capacity Market and Fast Reserve auctions drove this concentration.
• The development pipeline exceeds 6 GW of ready-to-build projects. MACSE eligibility is steering most new capacity to Southern Italy, especially Puglia and Sicily.
• We forecast Italy could reach up to 15 GW by 2030, backed by MACSE contracts and capacity market awards.

Italy’s battery fleet has grown sixfold since 2023

Italy started 2023 with less than 100 MW of operational battery capacity. By the end of 2025, installed capacity will have surpassed 1.9 GW. Energy capacity followed a similar trend, climbing from 1.1 GWh to over 7 GWh.

Most of this growth is thanks to Enel’s capacity market portfolio. The utility commissioned over 1.1 GW between December 2023 and mid-2024, bringing online projects at former thermal plant sites in Sardinia, Lazio, and Northern Italy.

These numbers cover only utility-scale storage. Italy also has a substantial residential battery market, driven by tax incentives for home solar-plus-storage systems.

Enel dominates the operational battery market

Enel holds more than 85% of Italy's operating battery capacity. This is due to its early-mover advantage: Enel secured 1.6 GW in the 2022 capacity market auctions, when few rivals were bidding at scale.

Enel repurposed decommissioned thermal sites in Sardinia, Lazio, and Northern Italy. These brownfield locations already had grid connections and permitting in place.

The first MACSE auction results reinforced this trend. Enel won 6.7 GWh of the first 10 GWh awarded.

Other developers are building their positions through grid connection applications and future auctions. How market shares evolve will depend on build-out rates and the results of the MACSE auctions scheduled for 2026 and 2027.

Sardinia and Northern Italy host most operational battery capacity

Sardinia accounts for nearly 800 MW of operational capacity, or almost half of the national total.

This concentration is largely due to auction design: the Capacity Market auction for 2024 allocated about 500 MW of adequacy demand to the island (equivalent to roughly 750 MW of 4-hour BESS), while earlier Fast Reserve auctions also set aside specific volumes for Sardinia.

The island also offers Italy's , due to limited interconnection with the mainland. Given the island's smaller market size, this concentration is even more significant compared to Northern regions.