Canadian Solar Inc. (NASDAQ: CSIQ) announced that its energy storage subsidiary, e-STORAGE, has entered into an agreement with a subsidiary of Axpo to deploy an 8 MW/40 MWh battery energy storage system (BESS) in southern Italy, according to a press release.

The system will be installed at Axpo's existing combined-cycle gas power plant in Rizziconi, Calabria. Construction is scheduled to begin at the end of 2026, with grid connection and commercial operation expected in early 2028.

The project marks e-STORAGE's first in Italy. Under the agreement, e-STORAGE will supply its SolBank 3.0 battery blocks, power conversion systems, and its EQ-S Energy Management System. Battery cells and 5 MWh capacity SolBank 3.0 pack systems are manufactured at Canadian Solar's own production facilities.

The Rizziconi site will use the plant's existing grid interconnection to provide flexibility and balancing services to a region where solar output regularly exceeds midday grid absorption capacity.

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

Jeff Roy, President of e-STORAGE, said: "To enter one of Europe's most dynamic storage markets through an integrated project like this proves just how effectively our technology can adapt to real grid needs."

Both companies stated they plan to expand their collaboration beyond this initial project. As of May 8, 2026, Canadian Solar reported a $3.5 billion contracted backlog for its e-STORAGE business, which had shipped over 20 GWh of battery energy storage solutions globally as of March 31, 2026.