Italy Energy Storage Market in 2024: Fit for 55 by 2030

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There is a big background about Italy energy storage market in 2024: Fit for 55 by 2030

Something you must know about Italy Energy Storage Market in 2024. Firstly let’s look Italy horizontal irradiation.

The horizontal irradiation decides Italy energy storage market
Italy solar resource

The solar resource decides Italy energy storage market a lot.

What’s “Fit for 55” ?

To know more about Italy’s solar market in this unique times, we must know the significance of “Fit for 55” and Italy’s Renewable Energy Storage Goals. “Fit for 55” refers to the EU’s target of reducing net greenhouse gas emissions by at least 55% by 2030. According to research by Italian grid operator Terna SpA, approximately 71 GWh of new utility-scale storage capacity will be required under the Fit-for-55 scenario by 2030. Italy aims to deploy a total of 71 GWh of renewable energy storage by 2030 to decarbonize its energy system and align with EU targets.

As Europe pursues its ambitious goal of reducing carbon emissions by 55% by 2030 through the “Fit for 55” plan, the emphasis on renewable energy solutions such as wind and solar power across EU nations becomes paramount. The surge in demand for household energy storage systems in Europe, triggered by the 2022 energy crisis, has notably boosted production for Chinese energy storage companies. However, the challenge lies in the high levels of inventory in European households.

Now, with the European Union’s approval of Italy’s €17.7 billion energy storage plan, could this be the opportunity for European households to deplete their inventories and for Chinese enterprises to return to a path of high growth?

A crucial influence factor for Italy energy storage market in 2024: European Union Commission Approves Italy’s €17.7 Billion Energy Storage Subsidy.

Recently, the European Union Commission approved a €17.7 billion subsidy from the Italian government to support centralized electricity storage. According to research released by CITIC Securities on December 29th, the EU’s approval of Italy’s €17.7 billion energy storage investment plan is expected to add 9 GW/71 GWh of long-duration storage by 2030. The approval signifies Europe’s firm commitment to supporting the development of new energy sources and its focus on the construction of long-duration adjustment resources.

The projected energy storage installed capacity (GWh) in Italy by 2030

The Current State of Solar Energy Storage in Italy

Italy saw a substantial increase in newly installed household energy storage units, reaching 69,500 units with a capacity of 676 MW/914 MWh in the second quarter of 2023, a 276% and 147% year-on-year increase, respectively. However, this trend declined by 15% and 20% sequentially due to the gradual cancellation of the “super bonus” incentive scheme. Additionally, Italy witnessed rapid growth in solar photovoltaic (PV) installations, with over 3.51 GW added in the first nine months of 2023, bringing the cumulative PV capacity to 28.57 GW by September.

The Birth of a Super Plan

The European Commission announced last Thursday the approval of Italy’s €17.7 billion plan to aid the construction of energy storage facilities exceeding 9 GW/71 GWh. This plan, slated to continue until the end of 2033, will provide annual payments to electricity storage developers to cover investment and operational costs. The aid will be allocated through a bidding process. Italy’s new measures, now approved under EU state aid rules, aim to create a centralized electricity storage system to support the integration of renewable energy into the Italian power grid. It envisions establishing a new “time-shifting trading platform” where storage capacity will be aggregated and offered to third parties through standardized time-shift products. This platform will enable renewable energy producers to utilize supported storage assets, shifting their electricity generation to times of higher demand.

Technical Standards and Innovation

The plan mandates adherence to performance standards set by Italian Transmission System Operators (TSOs) and approved by the Italian energy regulator, with regularly updated lists of eligible technologies reflecting evolving technological advancements. Currently, this includes advanced solutions such as electrochemical storage, lithium-ion battery storage, and pumped hydro storage.

Objectives of the Plan

The primary objective of the plan is to seamlessly integrate renewable energy into Italy’s power framework. Outlined in Italy’s notification, this comprehensive plan envisions the establishment of energy storage facilities with a total capacity exceeding 9 GW/71 GWh. These facilities will facilitate the integration of renewable energy generation with the existing national power grid.

Calculation of 9 GW: How Was It Derived?

Italy’s electricity grid operator Terna recently released a research report highlighting two key technologies: pumped hydro storage and lithium-ion battery energy storage. Notably, all ongoing projects disclosed in the report center around lithium-ion battery storage solutions.

Italy aims to deploy a total of 71 GWh of energy storage by 2030 to decarbonize its energy system, aligning with EU targets. According to Terna, the Italian transmission system operator, this estimation is based on a report released in August 2023, which explored the applicability of different technologies for deploying 71 GWh of new large-scale energy storage. Terna predicts that the average rated power of 71 GWh will need to be one-eighth of the storage capacity, equating to a total rated power of 8.875 GW. The report identifies seven reference technologies, including lithium-ion battery storage and pumped hydro storage.

Italy energy storage market in 2024. Terna is the first grid operator for electricity transmission in Europe. It promotes the energy transmission and sustainable development by focusing on people and innovation.
Terna is the first grid operator for electricity transmission in Europe. It promotes the energy transmission and sustainable development by focusing on people and innovation.

Introduction of Time-Shifting Trading Platform

A novel aspect of the plan is the introduction of a “time-shifting trading platform.” This platform will aggregate storage capacity and offer it to third parties through standardized time-shift products – a quantified service balancing electricity demand variations across different time periods through storage. Beneficiaries will need to utilize their storage assets on this platform, while TSOs will optimize the use of storage assets through the platform. This innovative platform will enable renewable energy producers to adjust their electricity production according to demand fluctuations, effectively bridging the gap between periods of excess generation and power shortages.

Opportunities in Italy energy storage market in 2024

Definitely, there will be a large-scale storage construction in Italy. Under frameworks like “Fit for 55” and “RePower EU,” it is anticipated that more countries will propose energy storage investment plans, potentially accelerating the construction of large-scale storage facilities in Europe. Currently, European local developers have secured gigawatt-level energy storage contracts in Italy.

Lithium-Ion battery is the key tech pathway of the ESS supply chain. The lithium-ion battery continues to stand out as the predominant technological pathway, signaling a promising opportunity for global manufacturers to integrate into the supply chain.

Opportunities in Italy energy storage market in 2024

Final Words

Italy’s ambitious energy storage plan presents a significant opportunity for global suppliers. With the EU’s commitment to reducing carbon emissions and transitioning to renewable energy, the approval of Italy’s plan marks a crucial step forward in achieving these goals.

From Feb 28 ~ Mar 1, Donnergy Technology will show ESS products including innovative EV Charging ESS and All-in-one ESS in the K.EY Expo 2024 in Rimini, Italy

K.EY The Energy Transition Expo 2024 in Rimini Exhibition Centre

Want to know where we are going to show new products in 2024 globally? Please click Donnergy Solar Energy Expo 2024 to know more.