Battery Storage in Southern Italy: Canadian Solar Subsidiary E-Storage and Axpo Launch First Joint BESS Project in Calabria

Kitchener (Canada) / Zurich – The European battery storage market continues to gain momentum. E-Storage, the energy storage subsidiary of Canadian solar company Canadian Solar, and Swiss utility Axpo are jointly developing their first battery storage project in Italy, responding to growing grid bottlenecks in the southern part of the country.

With the project in Calabria, E-Storage is advancing its expansion strategy in continental Europe. The company will deliver a fully integrated storage solution developed and manufactured in-house, while also strengthening its partnership with Axpo as a foundation for long-term cooperation in European markets.

8 MW/40 MWh battery storage at Rizziconi gas power plant: construction start planned for end-2026

E-Storage has signed an agreement with an Axpo subsidiary to build a five-hour battery energy storage system with a capacity of 8 MW and 40 MWh in Rizziconi, Calabria. The system will be installed at an existing combined-cycle gas power plant operated by Axpo and will use its existing grid connection to provide flexibility and balancing services. Construction is scheduled to begin at the end of 2026, with grid connection and commercial operation expected in early 2028.

E-Storage will deliver a fully integrated solution combining SolBank 3.0 battery blocks, power conversion systems and the company’s proprietary EQ-S energy management system into a coordinated overall platform. The battery cells and SolBank 3.0 modules, each with 5 MWh capacity, are developed and manufactured at Canadian Solar’s production facilities.

Grid bottlenecks in Calabria drive project: solar surpluses to be stored instead of curtailed

The project addresses a specific regional challenge: in southern Italy, solar power generation frequently exceeds grid absorption capacity, particularly during midday hours. Calabria has historically faced higher electricity costs and weaker grid infrastructure compared with northern Italy. The battery storage system is designed to absorb surplus solar power that would otherwise be curtailed and feed it back into the grid when needed, reducing pressure on the constrained network and helping lower regional electricity costs.

Frank Amend, Axpo Group Head of Batteries & Hybrid Systems, said: “We are pleased to start construction of our first BESS project in Italy. This will be an important addition to our portfolio as we implement our ambitious BESS strategy to strengthen grid flexibility and advance the energy transition in Europe.”

Jeff Roy, President of E-Storage, added: “Entering one of Europe’s most dynamic storage markets with an integrated project like this demonstrates how effectively our technology can address real grid requirements. We see this agreement as the basis for a longer-term collaboration to support customers across Europe.”

First milestone of planned partnership: E-Storage with 20 GWh global delivery volume

Both companies describe the Rizziconi project as the first milestone in a broader partnership and plan to expand their cooperation in the coming years. E-Storage had delivered more than 20 GWh of battery storage solutions globally by the end of March 2026, while Canadian Solar’s contracted backlog stood at USD 3.5 billion as of May 8, 2026. Axpo is Switzerland’s largest energy producer and operates in more than 30 countries.

Source: IWR Online, 26 Jun 2026