Copenhagen Infrastructure Partners (CIP), through its Flagship Fund CI V, has entered a new partnership with Italian developer GC Storage Services (GCSS) for a 2300MW pipeline of large-scale batteries in Italy.
The projects are spread across Northern and Southern Italy, with the first expected to reach ready-to-build in 2025.
Batteries are becoming a prominent part of CIP’s portfolio with recent investments in the UK, US, Chile, and Australia.
The addition of the Italian pipeline marks CIP’s growth into selected continental European markets where the system need for batteries is clear.
Italy has a supportive regulatory framework allowing CIP to leverage its growing experience in the storage sector to successfully deliver these large infrastructure projects, the investor said.
Italy is expected to grow into one of Europe’s largest battery markets enabling it to meet its 2030 renewable energy targets, decarbonising the power system whilst ensuring security of supply.
The business case underpinning this pipeline is facilitated by the long-term contracted revenue offered by the Capacity Market (primarily in the North of Italy) and the MACSE auctions to be held in the South.
Nischal Agarwal, partner at CIP, said: “The partnership with GCSS is a great opportunity for us to expand our pipeline of utility scale battery storage projects and to enter the promising Italian market.
“Italy has a clear need for storage and the enabling market and regulatory mechanisms are being put in place to make battery storage projects commercially attractive.”
Roberto Castiglioni, chief executive of GCSS, added: “Together with Agnoli Giuggioli (AG), we created GCSS with the objective of developing one of Italy’s largest and most bankable battery storage platforms.
“Leveraging our UK expertise and AG’s deep local regulatory knowledge, we are building a portfolio of strategically distributed sites across key Italian zones.
“Partnering with such an experienced investor like CIP allows us to deliver projects that sets new standards for energy storage in Italy.”