British and Italian renewable companies partner on 1GW battery storage pipeline

London-based renewables company Renewable Power Capital (RPC) and Italian renewables developer Altea Green Power have entered a development partnership for 1GW of battery energy storage in Italy.

The partnership aims to achieve ready-to-build status for the battery storage pipeline over the next two to four years.

The partnership marks RPC’s entrance into the Italian market, stating the potential for expanding the cooperation beyond 1GW or in other technologies.

Kevin Devlin, CEO at RPC, said in a release: “This is an opportune time to enter the Italian storage market through a development partnership, given the interesting progress in the regulatory landscape and its significant growth potential.

“This deal once again reflects the strength of RPC’s approach to flexibly working with strong partners. We see the Italian storage sector as a strategic priority and we’re excited to be joining forces with such an experienced development partner as Altea Green Power.”

Giovanni Di Pascale, CEO at Altea Green Power, commented that the co-development agreement adds another component to their portfolio of BESS storage projects, enhancing their overall power capacity.

“Partnering with well-established international investors specialising in the renewable energy sector provides a strong impetus, prompting us to engage in ongoing dialogue and make significant improvements to our business practices.

“Additionally, the development of alternative energy and storage facilities serves as an important boost to our growth and know-how. We look to the future with confidence: the high margins of these projects paves the way for us to achieve the ambitious operating and financial performance targets we have set and outlined in the five-year plan.”

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Italy’s burgeoning battery market

According to Aurora Energy Research in their third European Battery Markets Attractiveness Report, Europe is on the brink of a much-needed surge in battery energy storage, with Great Britain and Italy two of the three leading markets for battery storage investment on the continent.

According to the research consultancy, the top three market players, with Ireland I-SEM (Single Electricity Market) the third, have several shared attributes. These include solid spreads, strong policy support and capacity market remuneration, which provide investors with long-term contracted revenue.

In Italy specifically, Aurora cites the country’s ambitious target of 9GW battery capacity by 2030, coupled with opening its ancillary markets to BESS.

Commented Eva Zimmerman, Aurora’s lead for flexible energy, in a release: “Batteries serve as indispensable assets in driving the energy transition forward. However, the attractiveness of the market hinges on a multitude of factors.

“Elements such as risk appetite, investment scope and preferred setup are just as pivotal as market design and a comprehensive understanding of future power market developments. Considering these variables collectively is essential for making informed investment decisions in this evolving landscape.”

Ashurst and Fichter acted as legal and technical advisors, respectively, to RPC. DLA and Green Dealflow acted as legal and transaction advisors, respectively, to Altea Green Power.