​Italy is set to cross 2 GW of battery capacity in 2026.

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

Today, Italy hosts one of Europe's most active development pipelines, with over 6 GW of battery projects ready to build. Capacity market auctions and the new MACSE mechanism have given developers clear investment signals.

If you have any questions regarding the content of this article, reach out to the author 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 drove this concentration.
• The development pipeline exceeds 6 GW of ready-to-build projects. MACSE eligibility is pulling most volume toward Southern Italy, particularly 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 entered 2023 with fewer than 100 MW of operational battery capacity. By the end of 2025, installed capacity exceeded 1.9 GW. Energy capacity followed the same trajectory, rising from 1.1 GWh to over 7 GWh.

Most of this growth came from 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 across Sardinia, Lazio, and Northern Italy.

​These figures cover utility-scale storage only. Italy also has a significant residential battery market, driven by a tax incentive for home solar-plus-storage systems.

Enel dominates the operational battery market

Enel holds over 85% of Italy's operational battery capacity. This position reflects 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 pathways in place.

The first MACSE auction results reinforced this pattern. Enel captured 6.7 GWh of the first 10 GWh awarded.

Other developers are building positions through grid connection applications and future auction participation. How market shares evolve will depend on execution rates and the outcomes of 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, representing nearly half of the national total.

This concentration is largely driven by auction design: the Capacity Market auction for delivery year 2024 allocated around 500 MW of adequacy demand to the island (corresponding to approximately 750 MW of 4-hour BESS), while 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 relative to Northern regions.