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

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

Today, Italy boasts one of Europe’s most active development pipelines, with over 6 GW of battery projects ready for construction. Capacity market auctions and the new MACSE mechanism have sent developers strong investment signals.

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

Key takeaways

• Italy’s operational battery fleet reached 1.9 GW and 7.3 GWh by the end of 2025.
• Enel owns over 85% of operational capacity, having commissioned most of its portfolio across 2024 and 2025.
• Sardinia hosts nearly half the operational fleet. Capacity Market and Fast Reserve auctions with dedicated volumes have driven this concentration.
• The development pipeline exceeds 6 GW of ready-to-build projects. MACSE eligibility is drawing most volume toward Southern Italy, especially Puglia and Sicily.
• We project Italy could reach up to 15 GW by 2030, supported 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 surpassed 1.9 GW. Energy capacity followed a similar path, increasing from 1.1 GWh to over 7 GWh.

Most of this growth came from Enel’s capacity market portfolio. The utility brought over 1.1 GW online between December 2023 and mid-2024, commissioning projects at former thermal plant sites across Sardinia, Lazio, and Northern Italy.

​These figures reflect only utility-scale storage. Italy also has a strong 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 operational battery capacity. This leadership stems from an early-mover advantage: the utility secured 1.6 GW in the 2022 capacity market auctions, when few competitors were bidding at scale.

Enel repurposed decommissioned thermal sites across 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 positions through grid connection applications and planning to participate in future auctions. Market share will depend on execution 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, almost half of the national total.

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

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