ENERGY STORAGE

Octopus & Nexta Capital Partners form Italian 1.5GW storage JV

December 18, 2023

Octopus Energy’s generation arm has formed a new joint venture (JV) with Milan-based Nexta Capital Partners to develop up to 1.5GW of commercial-scale battery storage systems across several projects largely in the south of the country.

Once operational, the projects are estimated to be capable of storing and releasing back into the grid enough electricity to power up to a million homes a day.

The investment was made by Octopus Energy Development Partnership (OEDP), a fund managed by Octopus Energy Generation that backs developers creating new green power in Europe.

The partners are also exploring optimising the battery assets through Octopus’ Kraken platform, which currently manages 6GW of green energy assets.

Italy has identified a need to build 9 GW of new grid-scale energy storage and has upped its renewables targets with the aim of having 65 per cent of electricity from green energy by 2030.

Zoisa North-Bond, CEO of Octopus Energy Generation, said: “We’re charging up our activity in Italy’s green energy market as we look to unleash more investment in the country. Italy is an incredibly interesting and fast-growing market for renewables and there’s significant untapped potential in the energy storage sector. Big batteries like the ones we’re developing with this new joint venture make the most of when it’s sunny and windy by storing abundant green energy and releasing it back into the grid when it’s needed. Battery storage will play a vital role in a 100 per cent green energy system – and exciting projects like this will help us to get there quicker than ever before.”

Fabrizio Caputo, co-founder and managing director of Nexta, said: “The joint venture strengthens the partnership with Octopus Energy and reaffirms the primary role of Nexta within the renewable energy industry in Italy. Battery storage represents a pillar of our asset diversification strategy and we strongly believe the pipeline we are developing will contribute to the stabilisation of a rapidly changing grid ecosystem generated by an unprecedented penetration of renewable energy sources in the market.”