Italy concluded the year 2023 with an impressive tally of 518,947 energy storage systems (ESS) integrated into the grid, marking a notable surge from the preceding year. According to data sourced from ITALIA SOLARE and Terna, these systems collectively wielded a power capacity of 3.37 GW and boasted a storage capacity amounting to 6.65 GWh.

The year-over-year comparison revealed a remarkable uptick, with the number of connected systems nearly doubling from the close of Q1 2023, which saw 311,188 installations. Such substantial growth underscores the burgeoning significance of energy storage within Italy's energy infrastructure.

Ninety-six percent of the aggregate capacity came from storage linked to photovoltaic (PV) configurations, with the majority (94.2%) allocated to PV facilities generating less than 20 kW, totaling 515,567 units. The residual capacity is attributed to stand-alone storage (210 MWh / 128 MW) and storage integrated with thermoelectric and wind facilities (56 MWh / 68 MW and 2 MWh / 2 MW, respectively).

Lithium-ion batteries maintained their dominance as the technology of choice, accounting for 99.5% of cumulative connected capacity. However, other technologies made notable appearances, including lead-acid batteries (13 MWh), hydrogen storage (5 MWh) and supercapacitors (3.74 MWh).

Mauro Moroni, co-coordinator of the Energy Storage and Hydrogen Working Group at ITALIA SOLARE, foresees a significant acceleration in the sector driven by decreasing module and battery costs, anticipating an increase in sales, especially in the commercial and industrial segments. "Energy storage systems are becoming increasingly integral to the electrical infrastructure of our country, mostly being paired with small retail photovoltaic installations. However, the landscape of energy storage is expected to change rapidly due to significant reductions in module and battery costs, translating into substantial sales increases soon. 2024 will mark the beginning of the storage market in the commercial and industrial sector, while for utility-scale installations, 2025 is likely to be the key starting year. For all these reasons, we anticipate an acceleration of the sector compared to last year, with a forecasted installed capacity in 2024 of approximately one and a half times the current capacity," commented Moroni.

In a comprehensive review of 2023, Italy witnessed the connection of 287,706 energy storage systems, amassing a power capacity of 2.02 GW and a storage capacity of 3.84 GWh. This represented a notable 89% increase in connected capacity compared to the previous year, with PV installations below 20 kW contributing significantly (92%).

Regional analysis highlights Lombardy as the frontrunner with 1,198 MWh of PV-associated storage, trailed by Veneto, Emilia Romagna, and Piedmont. Notably, these four regions collectively account for over half of Italy's total PV-associated storage capacity. Stand-alone systems are dispersed evenly across various regions, including Piedmont, Veneto, Liguria, Umbria, Campania, Puglia, Sicily, and Sardinia.