Huawei’s view on Italian battery storage market

Huawei is focusing on commercial and industrial (C&I) and utility-scale storage in Italy due to organic growth in demand from companies and auctions for larger plants, Gianluca Proietti told pv magazine Italia. He added, residential storage is destined to suffer and the inverter market is stabilizing.

“In previous years, there has been strong demand in the residential segment due to the incentives introduced through the 110% [tax exemption] ‘Superbonus’,” said Proietti. That has proven to be a bubble, he said, adding that in addition, the Ecobonus tax deduction available for renovations is due to fall from 50% to 35% after 2024.

“The residential sector in the coming years is expected to stabilize without particular peaks,” said the Huawei representative. “Segments that are growing are mainly C&I, where companies are realizing that there are now products that support them in reducing their self-consumption.”

Referring to the areas each Italian region may have to nominate as suitable for simplified renewable energy permitting, Proietti added, “The utility-scale market is also attesting to a good level despite the uncertainties on the famous ‘suitable areas.’ Strong growth is expected in [energy] storage utility-scale plants thanks to the auctions that [national grid company] Terna is preparing.”

Opposition

The vice president of Huawei’s global key-account department highlights the difficulties PV faces in Italy: bureaucracy and continuous changes in regulation. And there is another significant hurdle.

A “defamation campaign against renewables” has developed, said Proietti, especially in regions such as Sardinia, with some politicians instead backing nuclear. Italy has never had nuclear power.

As for inverters, Proietti said Italian demand is not decreasing and volumes are stabilizing.

“We do not expect any particular sector to see a spike, although the C&I sector is currently the one with the highest growth rate,” he said. “The utility-scale sector is growing but not as fast as expected. Growth will certainly be faster in storage.”

That confirms a trend, observed at the 2024 Intersolar trade show, in Munich, which has seen several inverter manufacturers enter the battery market.

“There are two fundamental aspects to evaluate,” said Proietti. “On the one hand, the opportunities offered by the market (see the auctions that Terna is preparing), on the other hand, another aspect often comes from the customers themselves who are realizing that investments that include PV, if coupled with BESS [battery energy storage systems], can lead to greater economic benefits. In some countries this has now become a fact and not just an element to evaluate.”

From pv magazine Italia.