1,000 MW Utility-Scale Battery Storage BESS (RTB)

The 1GW BESS Project in Italy is a pioneering, utility-scale 1,000 MW (1 GW) stand-alone Battery Energy Storage System located in the strategic industrial and energy corridor of Italy. Developed by the project sponsor, this landmark asset is positioned to become one of the largest standalone battery storage systems in the world.

Italy is one of Europe’s densest and most critical clean energy generation basins. However, the rapid expansion of solar and wind power has placed immense stress on the local high-voltage transmission network. The BESS project is uniquely co-located with some of the region's largest generation assets:

By operating under "load leveling" and "peak shaving" configurations, the project stores excess, cheap renewable generation during peak production hours and discharges it back into the high-voltage network during times of high demand. This localized buffering significantly reduces transmission line congestion and prevents the costly curtailment of green energy.

Unlike early-stage greenfield developments, this project has successfully cleared its most complex regulatory and technical hurdles:

The project is on a structured, de-risked pathway toward commercial operations:

1. 01
   AU (Single Authorization) SubmissionJune 21, 2024 (Completed)
2. 02
   CdS (Services Conference) LaunchDecember 20, 2024 (Completed)
3. 03
   Expected Final Permit (AU) Decree30 August 2026 (Completed)
4. 04
   Start of On-Site ConstructionQ4 2026 (OPEN)
5. 05
   Commercial Operation Date (COD)Q4 2027 (OPEN)

1. Unprecedented Scale: A 1,000 MW capacity offers significant economies of scale, optimal procurement leverage, and a dominant market presence in Southern Italy's grid-balancing market.

2. Regulatory Tailwinds: Italy's updated PNIEC climate targets have risen to 131.3 GW of renewables by 2030, which can only be achieved with massive, fast-responding BESS capacity.

3. Structured Capacity Revenues: The asset is eligible to bid into Terna's capacity market auctions, unlocking long-term, highly predictable, and legally secured capacity payment structures.

Funding Source	Share (%)	Amount (€M)	All-in Rate	Tenor	Repayment Profile
Senior Debt	85.00%	321.88	4.50%	15 years	Equal annual principal (€21.46M/yr)
Junior Debt	7.50%	28.40	4.50%	15 years	Equal annual principal (€1.89M/yr)
Total Debt	92.50%	350.29	4.50%	15 years	Equal annual principal (€23.35M/yr)
Equity	7.50%	28.40	—	—	Paid-in Equity at Financial Close
Total CapEx	100.00%	378.69	—	—	Central Scenario

1. 01
   DSRA (6-Month Debt Service Reserve Account)€19.56M (50% of Year 1 total debt service).
2. 02
   Total Equity Outflow at Y0 (Equity + DSRA)€47.96M.

Figures in €M

Period	Opening Balance	Interest (Senior)	Interest (Junior)	Total Interest	Total Principal	Total Debt Service	Closing Balance
Y1	350.29	14.48	1.28	15.76	23.35	39.12	326.93
Y2	326.93	13.52	1.19	14.71	23.35	38.06	303.58
Y3	303.58	12.55	1.11	13.66	23.35	37.01	280.23
Y4	280.23	11.59	1.02	12.61	23.35	35.96	256.88
Y5	256.88	10.62	0.94	11.56	23.35	34.91	233.52
Y6	233.52	9.66	0.85	10.51	23.35	33.86	210.17
Y7	210.17	8.69	0.77	9.46	23.35	32.81	186.82
Y8	186.82	7.72	0.68	8.41	23.35	31.76	163.47
Y9	163.47	6.76	0.60	7.36	23.35	30.71	140.11
Y10	140.11	5.79	0.51	6.31	23.35	29.66	116.76
Y11	116.76	4.83	0.43	5.25	23.35	28.61	93.41
Y12	93.41	3.86	0.34	4.20	23.35	27.56	70.06
Y13	70.06	2.90	0.26	3.15	23.35	26.50	46.70
Y14	46.70	1.93	0.17	2.10	23.35	25.45	23.35
Y15	23.35	0.97	0.09	1.05	23.35	24.40	0.00

Bankability threshold: Min DSCR > 1.20x

Metric / Year	Y1	Y2	Y3	Y4	Y5	Y6	Y7	Y8	Y9	Y10	10-Yr Min	10-Yr Avg
Debt Service (€M)	39.12	38.06	37.01	35.96	34.91	33.86	32.81	31.76	30.71	29.66	—	—
Realistic Scenario	4.02x	4.12x	4.13x	4.15x	4.16x	4.19x	4.21x	4.24x	4.27x	4.30x	4.02x	4.18x
Optimistic Scenario	5.17x	5.30x	5.32x	5.35x	5.38x	5.41x	5.45x	5.50x	5.55x	5.60x	5.17x	5.40x
Stress Scenario (−25%)	2.87x	2.94x	2.94x	2.94x	2.95x	2.96x	2.97x	2.99x	3.01x	3.03x	2.87x	2.95x

Formula: FCFE = Net Profit after Tax + Depreciation − Total Debt Service (€M)

Scenario / Year	Y0	Y1	Y2	Y3	Y4	Y5	Y6	Y7	Y8	Y9	Y10
Realistic	−47.96	41.59	42.39	40.65	38.96	37.31	35.71	34.16	32.64	31.17	29.74
Cumulative Realistic	−47.96	−6.37	36.02	76.67	115.63	152.94	188.65	222.81	255.45	286.62	316.36
Optimistic	−47.96	74.04	74.83	72.45	70.12	67.85	65.64	63.48	61.38	59.34	57.35
Cumulative Optimistic	−47.96	26.08	100.91	173.35	243.47	311.32	376.96	440.44	501.82	561.16	618.51
Stress (−25%)	−47.96	9.15	9.94	8.85	7.80	6.78	5.79	4.83	3.90	3.01	2.14
Cumulative Stress	−47.96	−38.81	−28.87	−20.02	−12.22	−5.45	0.34	5.18	9.07	12.08	14.23

Parameter / Metric	Realistic Scenario	Optimistic Scenario	Stress Scenario (−25%)	Unit / Definition
Total Equity Required (incl. DSRA)	47.96	47.96	47.96	€M at Financial Close
Equity IRR (10-Year After-Tax)	85.28%	153.76%	6.48%	Levered after IRES (24%) + IRAP (3.9%)
Equity IRR (20-Year After-Tax)	85.40%	153.77%	13.07%	20-year operational horizon
Non-Discounted Payback Period	1.15	0.65	5.94	Years from COD
10-Year Equity Multiple (MOIC)	7.59x	13.89x	1.29x	Total 10-yr Equity CF / Y0 Equity Outflow
10-Year Minimum DSCR	4.02x	5.17x	2.87x	Minimum annual DSCR (Year 1)
10-Year Average DSCR	4.18x	5.40x	2.95x	Average DSCR (Years 1 to 10)

Line Item	Y1	Y2	Y3	Y4	Y5	Y6	Y7	Y8	Y9	Y10
Gross Revenue	175.00	175.00	171.50	168.07	164.71	161.41	158.19	155.02	151.92	148.88
OpEx	−17.87	−18.22	−18.59	−18.96	−19.34	−19.73	−20.12	−20.52	−20.93	−21.35
EBITDA	157.13	156.78	152.91	149.11	145.37	141.69	138.07	134.50	130.99	127.53
EBITDA Margin	89.8%	89.6%	89.2%	88.7%	88.3%	87.8%	87.3%	86.8%	86.2%	85.7%

Scenario	Y1	Y2	Y3	Y4	Y5	Y6	Y7	Y8	Y9	Y10
Optimistic (High)	220.00	220.00	215.60	211.29	207.06	202.92	198.86	194.89	190.99	187.17
Realistic (Central)	175.00	175.00	171.50	168.07	164.71	161.41	158.19	155.02	151.92	148.88
Stress (−25% / Low)	130.00	130.00	127.40	124.85	122.35	119.91	117.51	115.16	112.86	110.60