Italy is entering a decisive phase in its energy transition, and national grid operator Terna has invited stakeholders to weigh in on a critical question: What should drive the rollout of large-scale battery storage systems in the coming years?
As part of a public consultation tied to upcoming auctions for energy storage projects—particularly lithium-ion batteries scheduled for deployment in 2028—Terna has outlined two strategic paths for prioritizing future investments. The results will directly influence the criteria for selecting storage projects in tenders following this year’s procurement.
Two Roads to One Destination: A Carbon-Free Grid
The central question is whether Italy should prioritize grid reliability or investment efficiency in its storage deployment strategy. The answer will shape the country’s long-term energy resilience and economic viability.
- Option 1: Strengthening the Grid and Minimizing Curtailment This approach focuses on the value battery systems bring to grid stability, particularly by reducing the need to curtail surplus renewable generation. Curtailment—when clean energy is wasted because it cannot be used or stored—has become an increasingly relevant issue in Europe as solar and wind capacity expands. By strategically deploying batteries to absorb excess electricity and discharge it when needed, Italy could enhance grid adequacy while making better use of its existing renewable fleet.
- Option 2: Achieving Net-Zero with Minimal Build-Out Alternatively, Terna suggests prioritizing efficiency in reaching clean energy targets—essentially asking, how many batteries and renewables do we actually need to meet Italy’s decarbonization goals? This scenario emphasizes minimizing total investment by optimizing the ratio between generation and storage, potentially delaying or reducing the need for large-scale renewable projects. The idea is to achieve climate goals with the smallest possible infrastructure footprint, which could be more cost-effective in the long term.
Lithium-Ion vs. Pumped Hydro: Two Technologies, Different Roles
In addition to outlining its two methodological frameworks, Terna’s consultation document also compares the current front-runners in storage technologies: lithium-ion batteries and pumped hydro storage. While lithium-ion is more flexible and faster to deploy, pumped hydro offers long-duration storage at a potentially lower lifetime cost. Understanding the unique contributions of each will be key to crafting a balanced energy storage roadmap.
A Broader European Context
Italy’s debate mirrors wider conversations across Europe. As countries integrate higher shares of renewables into their grids, battery storage is emerging not just as a backup solution but as a core enabler of energy flexibility and security. How each country balances grid resilience with investment prudence will ultimately determine how fast—and how smoothly—Europe can move toward a net-zero future.
Get Involved
Terna is calling on industry stakeholders, policymakers, and the public to provide feedback by June 13, 2025. This consultation represents an opportunity to help shape the future of Italy’s energy landscape—not just for 2028, but for decades to come.
📩 Submit your insights to: [email protected]
📘 Learn more on the official Terna website: https://www.terna.it/it/sistema-elettrico/pubblicazioni/news-operatori/dettaglio/proposta-metodologia-progressione-capacita-stoccaggio
