Recurrent Energy, Octopus Energy Sign Optimization Deal for 14 MW/43 MWh Co-Located BESS in Italy

Recurrent Energy, a subsidiary of Canadian Solar Inc., has signed an optimization agreement with Octopus Energy for a 14 MW/43 MWh battery energy storage system (BESS) co-located with a 35 MWp solar photovoltaic (PV) plant at Montalto di Castro in Italy.

The BESS and the solar plant, named Montalto La Viola, are majority-owned by Recurrent Energy. While the PV plant has been operational since 2025, the battery storage system was recently connected to the grid.

Under the agreement, Octopus Energy will serve as the trading partner, managing and optimizing the battery storage asset. The company will deploy Kraken, its AI-powered energy operating system, to control, dispatch, and manage the BESS in real time. The platform is designed to optimize electricity demand and generation, maximize asset value, and reduce grid imbalance costs.

The companies said the partnership marks a significant step in expanding their presence in Italy’s energy storage market while supporting grid stability and the country’s clean energy transition. The project is also expected to improve system flexibility by integrating renewable generation with battery storage.

Alex Schoch, Director of Electrification at Octopus Energy, said battery storage is becoming increasingly important as renewable energy capacity grows, enabling excess clean electricity to be stored and supplied during periods of higher demand. He added that the collaboration with Recurrent Energy supports the development of a more flexible and resilient energy system in Italy.

Devrim Celal, Chief Flexibility Officer at Kraken, said the integration of solar generation with battery storage can lower operating costs, unlock additional revenue opportunities, and defer costly grid infrastructure upgrades through real-time optimization.

Dylan Marx, CEO of Recurrent Energy, described the agreement as the company’s first optimization structure and said it coincides with the commissioning of its first co-located battery energy storage project in Europe. He noted that the transaction supports Recurrent Energy’s strategy of combining multiple revenue streams while enhancing grid security, operational performance, and system flexibility. He added that the project establishes a benchmark for future energy storage deployments in Italy and internationally.