Javier Izcue, Vice President SG Europe at Sungrow, explains pv magazine that Italy will install 30 GW of batteries by 2030, but notes that the boom will not materialize in the short term as previously predicted.
Sungrow is bracing for lower-than-expected battery installations in Italy this year due to a lack of certainty over the capacity market. Javier Izcue, vice president SG Europe at Sungrow, told pv magazine that installations will mainly be led through tenders for the time being.
“Everyone predicts the boom will happen this year. From our perspective, we expect projects to take longer,” Izcue said at the recent Intersolar Europe event in Munich, adding that he expects 30 GW of battery capacity in Italy by the end of this decade.
Izcue said half of Sungrow’s sales in Italy currently come from the utility market, with residential and commercial and industrial (C&I) installations accounting for the rest. He noted that Sungrow sees many similarities between Italy and Spain, as both countries have “very demanding procedures.” This enables similar commercial strategies.
The Chinese company, which previously focused exclusively on inverters, now offers a total package in which batteries play a crucial role. This commercial decision is in line with the trend observed at Intersolar Europe, where leading Chinese players are also diversifying in a similar manner.
“Electricity prices normally lead to a focus on energy shifting, but storage can also help the electricity grid through, for example, frequency regulation,” says Izcue.
Sungrow hopes Italy avoids previous legislative mistakes, he added.
“The market expects Italy to be more stable in terms of policy, but we hope that the past will not return,” Izcue said. “To succeed with energy storage, we also need electrification to accelerate.”
He said that despite their idiosyncrasies, the Spanish and Italian markets both offer significant long-term opportunities.
“For storage investors, it’s not just about capex, but opex is essential. Prices are important, but the service agreement and the batteries’ warranties are factors that influence the decision of the installers and investors,” said Izcue. “Knowledge is important for their storage market, just for now, but also for its sustainability.”
Izcue said battery investments in the two largest southern European markets are similar. It is uncertain which country will be more attractive to investors.
“It will be a case-by-case issue. People who invest in Spain are also considering investments in Italy,” Izcue said, adding that the two countries are among the top four in terms of potential, along with Germany and the United Kingdom.
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
