Zelestra and Bkw, accumulation lease agreement

Zelestra, the Bilbao-based multinational renewable energy company owned by the Swedish fund Eqt, has signed a long-term tolling agreement, a kind of lease, with Swiss energy operator Bkw for the supply of a share of the capacity of a large-scale battery energy storage system, up to 2 GWh, in Northern Italy. The plant, designed to respond to the need for flexibility in an energy system in which the share of non-programmable renewables is growing, will be built by Zelestra in 2027 with an expected start-up in 2028. The contract, whereby the management of an asset is transferred in exchange for a guaranteed remuneration over time, is among the first of its kind in Italy. Recently Ego (Shell) and Aer Soléir announced a seven-year tolling agreement for a 250 MW battery in Piedmont.

Eliano Russo, Zelestra's country manager in Italy, where the company has been present since 2022, emphasises the innovation of the contractual form of renting, of tolling: 'The interesting thing is that in the project, in addition to the part already contracted, there is potentially further capacity: we are therefore interested in expanding the tool to secure the rest of the investment. The system is designed to preserve a modular approach, for different counterparts with different strategies. We will build it ensuring that different modules can eventually operate differently. We are exploring similar solutions in other countries such as Germany, Spain where the promotion of flexibility is further back. It is applicable to different geographies'.

In any case, Italy remains a market to focus on. Zelestra and Bkw had already signed a 10-year Ppa (power purchase agreement) together in December 2024 for the realisation of two 16 MW solar projects, in Ginosa (Apulia) and Bellomo (Sicily). For Bianca Sarbu, head of Trading & Origination at Bkw, the project 'underlines both our strong presence in the Italian market and our ambition to continue to grow. The agreement with Zelestra supports the expansion of flexibility and green solutions, expanding our portfolio in the renewables sector in Italy'.

"Italy is a key growth market for Zelestra," adds Russo: "We intend to significantly expand our customer base and our project pipeline in the coming years. In 2024 we had projects for 400-450 MW, mainly solar in the South. Today, by diversifying geographies and integrating batteries, we have reached 1.4 GW. With 30 GW under development globally, Italy today contributes a small part, but in perspective it is a core market. Today we are very present in areas such as South America and India, but the will is to grow in mature markets such as the USA, Spain, Germany, and Italy.

In our country, Zelestra intends to participate this year in the Macse and capacity market auctions for storage projects, and in the Fer X auction for photovoltaic projects, which are incentive tools that Italy puts in place. "They are giving us important leverage, also to overcome traditional stumbling blocks such as grid congestion, for which we also expect a reform soon. Or the authorisation issues, which especially in some geographies are complex. We hope for greater standardisation, so that predictability for investors increases. It is linked to the definition of a comprehensible, stable regulatory framework, for returns on capital-intensive investments in the medium and long term," concludes Russo.