Battery Energy Storage Systems: Shaping the Future of Clean Energy

There’s a quiet but crucial infrastructure that’s changing the future of energy: battery energy storage systems (BESS ). No longer a niche technology, a “technological accessory,” they’re now the backbone of the energy transition, enabling the integration of renewables and ensuring the security of the electricity system. Indeed, the global battery storage market could exceed $43 billion by 2030, reaching up to 620 GWh of annual demand.

In Italy, where Terna launched the first MACSE auction, funds like FIEE Sgr are also beginning to look at the sector to catalyze private capital in storage and drive the energy transformation.

Energy security, grid flexibility, and the integration of renewables? The solution is battery energy storage systems (BESS). And Italy, thanks to ambitious goals and already operational market tools, is poised to become a leading player in the sector. The next five years will be crucial: those who invest today, riding the technological and regulatory wave, will secure a leadership role in the new energy ecosystem.

What are battery energy storage systems (BESS) and why do they matter for the energy transition?

Battery energy storage systems (BESS) allow electricity to be stored and released to the grid when needed, ensuring stability, flexibility, and resilience. They are essential for integrating non-programmable renewable sources such as wind and solar, ensuring continuity of supply and the ability to balance peaks in demand.

In a country like Italy, where renewables are growing rapidly, BESS are no longer an ancillary technology but a strategic infrastructure. It is no coincidence that operators such as Enel X, Engie, and Edison have already announced large-scale plants in Sardinia and Sicily, strategic regions for the integration of renewables.

Why Italy can be a leading player in BESS

September 30th, 2025, marked a crucial milestone for the Italian energy sector: Terna launched the first MACSE (Electric Storage Capacity Procurement Mechanism) auction, dedicated to the procurement of electricity storage capacity. The initiative allocated 10 GWh of storage capacity in the South and the Islands, representing 100% of the required needs. The plants contracted by this first auction will enter into operation by 2028 .

The auction not only marked a technical breakthrough, but also the birth of a structured and regulated market for battery storage systems in Italy, which could open up important development opportunities.

Battery energy storage systems: a rapidly growing global and European market

According to Market Research Future, the global BESS market, currently valued at approximately $13.7 billion, could reach $43.4 billion by 2030, growing at an average annual rate of 21.3%.

McKinsey estimates that, over the same time horizon, annual demand will reach 450,620 GWh, generating revenues of between $120 and $150 billion. In Europe, the trend is equally significant: SolarPower Europe estimates that by 2029, cumulative storage capacity could fluctuate between 66 and 183 GWh, with the majority covered by utility-scale plants.

Opportunities and ambitions for Italy

The updated National Energy and Climate Plan (PNIEC) sets a target of 50 GWh of storage capacity for Italy by 2030. According to Aurora Energy Research, 10.5 GW of new BESS will be installed over the next decade, with approximately 3 GW already in an advanced stage of development.

Key factors supporting this path include the favorable regulatory framework (capacity market and, now, MACSE), the rapid expansion of renewables, and the growing interest of international operators, who view our country as one of the most promising markets in Europe. So much so that several energy giants have announced that Italy will become one of their three main European markets.

Battery energy storage systems already installed around the world: from Tesla Megapack to SonnenBatterie

Battery energy storage systems are being applied at various scales. At the utility level, prime examples include the Tesla Megapacks installed in California, which ensure grid stability for several gigawatt hours, or the large-scale projects implemented by Fluence in Germany, now a leading global provider of storage solutions. In the industrial and commercial sectors, giants like Amazon and Google are using BESS to power their data centers with renewable energy, while retail chains like Lidl have installed storage systems combined with photovoltaic systems in their logistics warehouses, reducing costs and peak consumption.

In the residential sector, products like Tesla’s Powerwall or SonnenBatterie (a German company acquired by Shell) are increasingly widespread in Italy, often integrated into energy community projects that allow sharing of locally produced solar energy. In all cases, the rationale is the same: transforming storage capacity from a “technological accessory” to a key infrastructure for the security of the electricity system.

FIEE Sgr, the storage investment strategy

Technology is moving fast: lithium iron phosphate (LFP) batteries are gaining ground thanks to lower costs, greater safety, and a longer lifespan than nickel- and cobalt-based alternatives. On the geopolitical front, international tensions are reshaping the balance of power: US restrictions on imports from Foreign Entities of Concern (FEOC) and competition between China and Korea could shift production capacity to Europe, strengthening Italy’s position.

In this scenario, private markets offer extraordinary opportunities for investors in energy innovation. This is where FIEE SGR, a private equity firm founded in 2014 and one of the leading financial operators dedicated to the energy transition in Europe, is committed.

FIEE currently manages over €500 million through four funds—three closed-end and one open-end—including Energy Transition Fund III (ETF III), which has already raised €200 million in its first closing with the support of institutional investors such as the European Investment Fund (EIF) and CDP Real Asset.

The fund’s strategy aims to capitalize on the most promising decarbonization trends: battery energy storage, energy communities, efficiency in buildings and infrastructure, smart grids, electric mobility, biofuels, and the circular economy. In particular, energy storage, currently a key regulatory and industrial priority, represents one of the pillars on which FIEE Sgr intends to consolidate its role as a catalyst for private capital in the energy transition.

This market is also a rapidly expanding investment frontier. FIEE Sgr’s ability to identify and support innovative companies operating in this space demonstrates how private equity can be a true strategic driver of the energy transformation, creating value for investors while simultaneously contributing to a more sustainable future.

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(Featured image by Sungrow EMEA via Unsplash)

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